The Argentine government is working to finalize a bilateral meeting between President Javier Milei and former U.S. President Donald Trump in the weeks leading up to the October midterm elections. According to sources familiar with the talks, the encounter is already in a mature stage of negotiations and could go far beyond a symbolic handshake: it may pave the way for a direct loan from the U.S. Treasury to Argentina.

The timing is no accident. The administration is facing severe political and financial pressures. The Central Bank of Argentina has been forced to sell significant reserves to defend the exchange rate, now capped at ARS $1,475 per dollar, while the government struggles with the fallout of a major electoral setback in Buenos Aires province. Against that backdrop, a Milei-Trump photo-op would serve a dual purpose: showing political support from Washington and signaling economic stability to jittery markets.

Washington's interest in Milei's program is not new. Back in April, U.S. Treasury Secretary Scott Bessent visited Buenos Aires and praised the president's "bold economic reforms" following the removal of capital controls. In a private meeting with investors organized by JP Morgan at the White House, Bessent went even further:

"If Argentina needs it, in the event of an external shock, and if Milei stays the course, we would be willing to use the Exchange Stabilization Fund (ESF)."

That statement, later reported by Bloomberg, was widely read as an explicit green light for a potential credit facility. Since then, technical teams on both sides have discussed the possibility of a direct Treasury loan, though its announcement has remained contingent on political timing and Trump's willingness to capitalize on the move.

Milei's upcoming trip to New York, scheduled for the week of September 24 for the U.N. General Assembly, could provide the stage for another key development. Beyond official meetings, the president plans to engage with private investors. According to Wall Street sources, Milei's inner circle - led by advisor Santiago Caputo - held a briefing this week at the Argentine Consulate in Manhattan, outlining the electoral scenario and the government's strategy ahead of October.

Participants left the meeting describing themselves as "satisfied and reassured" by the government's commitment to its economic program, fueling speculation that Milei's U.S. visit could also yield private investment announcements alongside political backing.

For analysts in Buenos Aires and New York alike, the Milei-Trump bilateral would be a high-impact move. On one hand, it would showcase Milei receiving direct support from his most powerful ally abroad. On the other, it could deliver a concrete policy signal if the U.S. Treasury formally announces a credit line.

Such a gesture would come at a critical moment: Argentina's risk premium (EMBI+) has climbed above 1,400 basis points, effectively shutting the country out of international debt markets. At the same time, Argentina faces foreign-currency maturities of over USD $8 billion through January 2026, a burden that cannot be met without external assistance.

The big question is timing. If the credit is announced before the elections, Milei could frame it as a political and economic win to shore up support. If the decision is delayed until after the vote, the bilateral may be reduced to a symbolic show of support rather than an immediate financial relief.

Either way, the government's strategy is clear: secure international backing to calm markets and voters alike, while signaling that Argentina's economic experiment under Milei is not unfolding in isolation, but with Washington's blessing.