In recent history, only three Latin American countries received bilateral aid from the American treasure without passing exclusively through the IMF. These disbursements were activated in the midst of financial crises.
As scope anticipated, the Government accelerates the treatment to achieve the support of the United States Treasurydirect aid that will help face the exchange tensions with the dollar of the last days. The support mechanism to sovereign nations by the US government is not a novelty, since it already happened in the past in other Latin American countries such as Mexico, Brazil and Uruguaywith a common denominator: they were during moments of urgency for financial crisis.
In the case of Argentina, according to this medium, It would consist of a swap (currency exchange) similar to that the country currently has with China. The President Javier Milei confirmed last Friday in Córdoba the objective of the search for support of the administration of Donald Trump, at a time when the Central Bank intervened strongly in the change market to contain the value of the dollar.
US Treasury Economic Aid: The case of Mexico
Mexico is an emblematic case, since it received twice direct financial aid from Washington. The first was in year 1982, In full debt crisis. There the American treasure granted a bridge loan of US $ 1,850 million to his neighbor to hold reserves and avoid an immediate default.
In 1995 it was another important moment, with the so -called “tequila crisis. At that time, The US government commanded by President Bill Clinton approved a help package of U $20,000 million through “Exchange Stabilization Fund “(ESF). He was one of the largest bilateral bilateral bilateral rescues in the history of the United States, key to stabilize the Mexican economy and contain regional contagion.
Brazil: Economic turbulence in the 90s and the help of the United States
In the case of Brazil, the direct economic aid of the Administration of Clinton was between 1998 and 1999. COn the real under pressure and the risk of a paying cessation, Washington participated in a help package of U $ 41,000 million next to the IMF.
Of that total, U $ S5,000 million came directly from the US Treasurywhich sought to support the main South American economy at a time of maximum fragility.
The “mini rescue” to Uruguay in 2002
During the regional crisis that followed the Argentine default of 2001, Uruguay faced a bank run due to the massive departure of deposits.
To deal with that strong decrease, the United States Treasury disbursed US $ 1,500 million via mechanism Spherthe same used in Mexico during the crisis of the “Tequila effect” in 1994-1995, in coordination with the IMF. That support was central to stabilize the Uruguayan financial system and avoid a greater collapse.
Source: Ambito
