The Trump administration is working to double funding for Argentina to $40 billion

WASHINGTON (AP) — The Trump administration is looking to provide $20 billion in additional financing to Argentina through a mix of financing from sovereign funds and the private sector.

This comes in addition to the $20 billion credit swap line that the US Treasury pledged to Argentine President Javier Miley and his government this month to support the collapsing South American country’s currency.

“We are working on a $20 billion facility that will complement our swap line, with private banks and sovereign funds that I think will be more focused on the debt market,” Treasurer Scott Besent told reporters on Wednesday. He described it as a “private sector solution” and said that “many banks are interested in it and many sovereign funds have expressed interest.”

In a White House meeting Tuesday with Miley, Republican President Donald Trump said his administration wants to help “our neighbors” with the aid package, but he also indicated the money could be withdrawn if Miley’s party does not win the October 26 midterm elections.

“If he loses, we will not be as generous with Argentina,” Trump said.

He watches: Trump meets with Argentinian Miley as the United States prepares for a $20 billion rescue plan

The Argentine peso fell slightly on Wednesday after Trump’s comments. The value of the peso fell by about 0.7%, with the dollar – the currency Argentines rely on for savings – trading at 1,395 pesos, compared to 1,385 pesos the day before.

On Wall Street, shares of major Argentine companies rose slightly after falling as much as 8.1% on Tuesday following Trump’s comments.

In Argentina, opposition criticism was swift.

Former President Cristina Fernandez, who is under house arrest after being convicted of corruption, wrote on social media: “Trump to Milley in the United States: Our agreements depend on who wins the elections.” Argentinians… you already know what to do!”

Martin Lousteau, president of the centrist Radical Civic Union, said that “Trump doesn’t want to help any country — he just wants to save Miley,” and that “nothing good can come of this.”

Maximiliano Ferraro, head of the opposition Civic Coalition, described Trump’s statements as a “blatant act of blackmail against the Argentine nation.”

Vulcano reported from Buenos Aires, Argentina.