Argentine President Javier Milei is banking on his friendship with US President-elect Donald Trump and billionaire Elon Musk in hopes of securing investment for the country, including a new loan from the International Monetary Fund (IMF). The information is from the newspaper Financial Times.
With a debt of US$44 billion (around R$255 billion), Argentina is the IMF’s largest debtor and is seeking billions in new resources to ease the rigid exchange and capital controls that hamper its economic recovery.
An official from Milei’s government stated that Trump’s victory would certainly accelerate negotiations with the IMF, an organization in which the US is the largest shareholder. .
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Milei positions himself as Trump’s main Latin American ally in a global culture war against the left, despite the deep trade differences between them. The Argentine president has expressed support for Trump’s re-election bid and has cultivated a friendship with Musk, who is interested in investing in Argentina’s lithium production, an increasingly valuable commodity.
Although Argentina is not a priority for Trump, analysts interviewed by Financial Times believe that Milei’s offensive can open doors. and , where he hopes to meet again with Trump and Musk.
The newspaper, however, states that Milei may face economic pressures resulting from Trump’s policies. Economists warn that the president-elect’s deportation plans and tariff hikes could spur inflation and complicate Milei’s efforts to stabilize Argentina’s economy.
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Despite this, Trump has helped Argentina in the past, being instrumental in securing a record $56 billion loan from the IMF in 2018. While the IMF praises Milei’s austerity measures, the institution is still hesitant to increase its exposure to the country. There are concerns about Milei’s refusal to significantly devalue the peso and a lack of clarity about his future monetary policy.
According to the Financial Timesexperts believe that Argentina may have a better chance of getting a new IMF support program during a Trump administration, especially after Argentina’s parliamentary elections in 2025, when Milei may have more political freedom to implement reforms.
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