Ahead of Hearing, Warren Presses Bessent to Terminate $20 Billion Line of Credit for Argentina's Government

Ahead of Hearing, Warren Presses Bessent to Terminate $20 Billion Line of Credit for Argentina's Government

Trump Administration opened $20 billion credit line to bail out Argentina's financial markets, and its global investors in order to prop up Trump political ally ahead of an election.

"Though the initial $2.5 billion draw has been 'closed,' the $20 billion line of credit for the Central Bank of Argentina appears to still be in effect."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent a letter to Scott Bessent, Secretary of the U.S. Department of the Treasury, calling on him to terminate the $20 billion line of credit for Argentina's financial markets. Treasury opened the line of credit months ago to help out President Milei, a long time ally of President Trump, ahead of a key election by orchestrating a massive bailout of Argentina's rich hedge fund investors. Although the Treasury Department has said Argentina's initial $2.5 billion draw on the line of credit has been repaid and the transaction "closed," the $20 billion line of credit for the Central Bank of Argentina appears to still be in effect.

"I write to request that the U.S. Department of the Treasury ("Treasury") terminate its $20 billion bailout of Argentina's financial markets. In September 2025, you announced your intent to use the Exchange Stabilization Fund ("ESF") to prop up the financial markets of Argentina. Over the course of 2025, Argentina's financial markets experienced significant turmoil. This turmoil boded poorly for Argentina's President, Javier Milei, whose party faced a crucial midterm election on October 26, 2025. President Milei, an ally and personal friend of President Trump's, needed help - and the Trump Administration provided it," wrote Senator Warren.

The Ranking Member requested documents and transaction details regarding the U.S. Treasury support for Argentina in December 2025, but Treasury did not provide substantive responses. Instead, the Treasury stated that the Exchange Stabilization Fund was used to address Argentina's short-term liquidity crisis and that Argentina fully repaid a $2.5 billion draw by December 2025. However, Treasury has not confirmed that the underlying Exchange Stabilization Agreement has been terminated, suggesting that the broader $20 billion credit line with Argentina may still remain in effect.

The Senator concluded: "Despite Treasury's assertion that its use of the ESF was for an "acute, short-term, and urgent" purpose, it appears-by leaving the ESA in place-to have left open the possibility of continued use of the ESF in Argentina well after the October 2025 elections."

The Ranking Member asks the Treasury to provide a copy of the Treasury's Exchange Stabilization Agreement with the Central Bank of Argentina, and written confirmation that it has been terminated, no later than February 12, 2026.

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