Trump signs $20 billion lifeline for Argentina

Argentina and the US signed off on a $20 billion financial lifeline on Monday, aiming to avert economic meltdown and bolster President Javier Milei ahead of critical legislative elections. President Trump has offered political and economic backing to Milei ahead of the Oct. 26 vote, which will determine whether his ally can push through labour, tax, and pension reforms.

Once a global poster child for libertarian, budget-slashing politics, Milei is struggling as his popularity wanes and reforms stall. He is fighting to prevent a peso devaluation before the vote, fearing higher consumer prices, while markets consider the currency substantially overvalued, forcing Buenos Aires to use limited foreign reserves to defend it. Trump has pledged $20 billion in public and private funds to help Argentina weather market volatility, contingent on Milei's strong electoral showing.