Bessent Calls $20B Argentina Lifeline ‘Critical’ Amid Elizabeth Warren’s Questions As Government Shutdown Enters 4th Week: Report

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  • According to a report by CNBC, Bessent’s remarks were a part of a response to a letter from Senator Elizabeth Warren.
  • The Treasury Secretary stated that he was “forced” to prioritize tasks necessary for President Donald Trump to execute his duties.

Treasury Secretary Scott Bessent reportedly termed the deal to extend a $20 billion lifeline to Argentina “mission-critical” as the U.S. government entered its fourth week of shutdown.

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Bessent’s remarks were a part of a response to a letter from Senator Elizabeth Warren, according to a report by CNBC. Warren sought an explanation from the Treasury Secretary as to why this was being done at a time when resources are constrained due to the U.S. government shutdown.

Bessent Says ‘Forced’ To Prioritize

The Treasury Secretary stated that he was “forced” to prioritize tasks necessary for President Donald Trump to execute his duties.

“We have been forced to prioritize mission-critical efforts necessary to the discharge of the President’s constitutional duties — including national security and global financial stability,” Bessent stated in his letter while responding to Warren.

— Scott Bessent, U.S. Secretary of the Treasury

What Is The $20 Billion Deal About?

The deal in question is a $20 billion currency swap between the U.S. and Argentina. As part of the framework, the Argentinian central bank would be able to exchange pesos for U.S. dollars with the Treasury Department.

This would help Argentina shore up liquidity as well as the value of the Argentine peso, which has declined nearly 4% since President Javier Milei’s La Libertad Avanza party suffered a defeat in provincial elections in Buenos Aires in September.

However, the report adds that Bessent did not respond to another question from Warren on the Treasury Department’s plans to coordinate with private sector lenders to extend a $20 billion loan to Argentina, on top of the $20 billion currency swap agreement.

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