BUENOS AIRES - Argentine stocks surged on Wednesday on a new US promise of aid for embattled President Javier Milei, despite Donald Trump conditioning the assistance on his ally winning upcoming midterm elections.
Some stocks on the benchmark Merval index rose by almost 10 percent on the announcement by US Treasury Secretary Scott Bessent that his department was working on the second $20-billion "facility" for Argentina in as many months.
The new program brings the total promised US assistance for the South American country to a whopping $40-billion.
Bessent told reporters in Washington that the new aid "would be adjacent to our swap line" announced in September, which already totalled $20-billion.
He said the new bailout would come from "private banks and sovereign wealth funds" and would be "more aimed at the debt market," amid growing concerns over Argentina's ability to meet its looming debt repayments.
Bessent made the announcement a day after Trump hosted the right-wing Milei at the White House, in a bid to boost the Argentine leader ahead of midterm elections on October 26.