As agreed, the US Treasury Secretary Scott Besent announced that a swap line of US $20 billion to Argentina is at the negotiation table with Javier Milei.
He US Treasury Secretary, Scott Besentsaid through social networks that they are negotiating with the Argentine authorities A US $ 20,000 million swap line with the Central Bank (BCRA). They also announced that “They are ready to buy Argentine bonds in dollars” and will do it according to the conditions, they demand it, as they are found “Prepared to grant an important Stand-by credit through the exchange stabilization fund.”
“I was in contact with numerous US companies planning to make important direct foreign investments in Argentina In multiple sectors in the event of a positive electoral result, “said Scott Besunt and assured that “Immediately” after the elections“We will start working with the Argentine government in the payment of its main debts.”
Within the ads, the possibility of “End the fiscal exemptions for producers of raw materials that convert currencies”. If that is specified, it would be rolled up The announcement of “zero retentions” made by the government of Milei just two days ago.
SWAP: What is this financing alternative about
A swap is a financial agreement by which Both countries exchange currencies for a certain period, with the commitment to return them later under certain conditions. In general, The United States does not make bilateral swaps with emerging countries, it only performs them with central banks of advanced economies, except exceptions.
Some of the swap that has the Fed They are with him European Central Bank, Japan, England, Swiss and Canada. It should be noted that the Fed also He enable temporary lines with other countries (such as Brazil, Mexico, South Korea or Singapore), but always under very specific conditions and by limited deadlines. With Argentina, There was never a direct swap line.
On the other side, Argentina has a single Swap agreement in force with Chinathrough Popular Bank of China (PBOC). It is for the equivalent of about US $ 18.5 billion. It was signed in 2009 with Cristina Kirchner as president and then in 2014 a second agreement was signed that was renewed in 2017 with Mauricio Macri and complemented at the end of 2018.
Source: Ambito
