Washington: The US Treasury Department signed an economic stabilization agreement with the Central Bank of Argentina for "a bridge to a better economic future for Argentina," Secretary Scott Bessent announced Tuesday.

According to Anadolu Agency, Bessent emphasized that President Javier Milei's efforts to reverse Argentina's economic decline, which he attributed to the radical leftism of the Peronists, are critically important. He highlighted that the stabilization agreement is intended to offer Argentina a path to economic freedom rather than serve as a bailout.

Bessent acknowledged Milei's commitment to reversing detrimental economic policies, including excessive spending, fiscal indiscipline, and irresponsible borrowing. He also mentioned that the International Monetary Fund (IMF) is in support of Argentina's robust economic program.

He further noted that the Trump administration backs Milei's reform plans and prudent fiscal strategy. "We do not want another failed state in Latin America, and a strong, stable Argentina as a good neighbor is explicitly in the strategic interest of the United States," Bessent stated.

On October 9, Bessent announced that after discussions with Argentine Economy Minister Luis Caputo, the US directly purchased Argentine pesos and finalized a $20 billion swap framework with the Argentine central bank. The bank confirmed on Monday that it had signed an agreement with the US Treasury Department valued at up to $20 billion to ensure exchange rate stability. A statement clarified that the agreement defines the terms and conditions for implementing swap transactions between the parties.