Washington is pursuing a bid to amplify support for Argentina to roughly $40 billion by tapping private funding sources rather than relying solely on direct public loans, senior U.S. officials said, as the South American nation grapples with high inflation, currency volatility and political uncertainty.

The initiative, described by a senior U.S. administration official speaking on background, would roughly double current U.S.-backed financial mobilization for Argentina from about $20 billion and would rely on a mix of loan guarantees, export credit, and blended financing to attract institutional investors and private banks. "We're focused on leveraging private capital to maximize support while limiting direct taxpayer exposure," the official said.

The size of the package—about $40 billion—would represent a material infusion for an economy that is roughly the size of a midrange advanced-emerging market, equivalent to approximately 5–7 percent of Argentina’s annual GDP in recent years. Proponents argue it could bolster central bank reserves, reduce pressure on the peso, and create breathing room for sensitive macroeconomic adjustments. Markets monitor such interventions closely because they can meaningfully narrow sovereign spreads and lower borrowing costs if investors perceive reduced credit risk.

Administration officials frame the move as both economic stabilization and geopolitical strategy. With growing Chinese commercial ties across Latin America, U.S. policymakers see an opportunity to anchor Argentina to Western capital and private-sector partners. The plan would likely involve U.S. agencies such as the Export-Import Bank, the U.S. International Development Finance Corporation and Treasury credit lines to underwrite projects that attract private capital.

But the strategy faces political and economic headwinds. Critics in Congress are expected to demand detailed cost estimates, risk-sharing arrangements and assurances that Argentina will pursue credible fiscal consolidation and inflation-fighting measures. "Any deal of this size must be conditioned on clear, verifiable reforms in Buenos Aires," said a House Republican aide. Opposition among fiscal conservatives could complicate approvals of guarantees or other contingent liabilities.

Economists caution that while private capital can amplify official resources, it is not a substitute for domestic policy fixes. Argentina has experienced recurring balance-of-payments stress and persistent inflation, and outside financing can buy time but not eliminate the need for structural measures such as tax reform, stronger central bank independence and targeted subsidy rationalization.

Market participants will watch hard data—foreign-exchange reserves, inflation readings and IMF program compliance—before pricing in any sustained improvement. The International Monetary Fund has historically played a central coordinating role in large financing packages for Argentina; any U.S.-led effort will likely be coordinated with multilateral lenders to align conditionality and monitoring.

If implemented, the blended-finance approach would reflect a broader policy trend in Washington: using private capital and financial engineering to pursue strategic economic objectives abroad. For Argentina, the offer could be a lifeline—conditional on political will in Buenos Aires and careful calibration in Washington to manage fiscal exposure and market expectations.