No Argentina Bailout Act
The No Argentina Bailout Act would prohibit the Exchange Stabilization Fund (ESF) of the U.S. Department of the Treasury from providing financial support to Argentina. Specifically, the bill would bar direct or indirect assistance to Argentina such as currency swap lines, purchases of Argentine pesos or Argentine sovereign debt, or any extension of credit instruments. It also requires that any financial contracts or instruments entered into before enactment that would violate this prohibition be sold or terminated within 7 days of enactment. The prohibition is temporary, ending on December 10, 2027. The bill includes a “sense of Congress” section expressing views about U.S. economic conditions, the purpose of the ESF, concerns about Argentina’s political and financial situation, and arguments against using U.S. public resources to bail out foreign markets. The bill was introduced in the Senate (S. 2965) by Sen. Warren and several co-sponsors and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Key Points
- 1The fund may not be used to provide direct or indirect financial support to Argentina, including currency swap lines, purchasing Argentine pesos or sovereign debt, or extending any credit instrument.
- 2Any pre-enactment financial contracts or instruments that would violate the prohibition must be sold or terminated within 7 days after enactment.
- 3The prohibition has a sunset clause and terminates on December 10, 2027.
- 4Short title: the act is named the “No Argentina Bailout Act.”
- 5The bill includes a “Sense of Congress” section that articulates opinions about U.S. workers’ and farmers’ economic challenges, the purpose of the ESF, concerns about foreign political events, and objections to a U.S. bailout of foreign markets tied to political dynamics.