The secretary of United States Treasury, Scott Besent, He confirmed that his country does not contemplate offering an additional financing line for Argentina. The definition arrives at a key moment for the government of Javier Milei, after the recent agreement with the International Monetary Fund (IMF) and in the middle of the first days of the new exchange scheme.
During his visit to Buenos Aires, Besent held a high profile meeting at Casa Rosada with President Milei and part of the economic cabinet. Although the US official positively valued the reforms promoted by the libertarian government, it was categorical to affirm that A bilateral credit line is not in analysis. “That is not under consideration”he replied when asked about the possibility of direct assistance from Washington to Argentina.
The statement was given in an interview with the Bloomberg agency, after the announcement of the new agreement with the IMF for US $ 20,000 million, of which US $1,000 million would be freely availability. Despite the symbolic support that implies Besent’s visit and its alignment with the local economic direction, the United States has no plans to expand financial support beyond the guarantee to multilateral organisms.
About the relationship with China
As for the relationship with China, Besent avoided linking the refusal to the credit line with the current Swap agreement between Buenos Aires and Beijing. He acknowledged that the Asian country acted with “good faith” to renew that mechanismand argued that if Argentina maintains its economic plan, it can eventually generate the necessary currencies to return those funds. He also noted that the United States observes with concern the growing Chinese influence in Latin America, although he clarified that there are no explicit conditioning towards the Milei government.
Besent said that the Chinese presence in Latin America worries the United States: “What we want to avoid in any case is what happens with the African continent, where China signed agreements disguised as help. Thus they took mineral rights, the balances of those countries were carried out. They have toll agreements, which guarantees that future generations are poorer and without resources. And we do not want to pass with America in Latin America,” held.
In response, China’s Embassy in Argentina launched a hard statement in which: “The statement on the qualified agreements of raptors and the alleged large amounts of debt in which the People’s People’s Republic of China is false. What is true is that some people with undercover motifs are trying to sow discords in Chinese-Argentine and Chinese relationships.”
Besent’s visit occurs within the framework of a change in economic policy that includes the elimination of the exchange rate and a strong commitment to fiscal balance. The US official highlighted those advances as part of a “historical process”, but made it clear that the United States direct assistance is not part of the next steps.
Who is Scott Besent?
Besent is a renowned American investor and economist, known for having been the head of investments of Soros Fund Managementthe investment fund of George Sorosbetween 2011 and 2015. During his career, he has been an influential figure in the world of global finances, standing out for his macroeconomic approach and his ability to anticipate important movements in markets.
In 2015, he founded his own fund, Key Square Groupwith an initial capital provided by Soros. Besent has also had an active public profile in economic and geopolitical debates, and in recent times he has expressed opinions on the economic situation of emerging countries, including Argentina.
Source: Ambito
