Treasury Secretary Scott Bessent has committed $20 billion in US taxpayer funds to rescue Argentina’s failing economy after his longtime friend and former colleague, hedge fund billionaire Rob Citrone, lobbied him to intervene, according to reports by Popular Information based on Argentine media sources. Citrone’s Discovery Capital Management holds large positions in Argentine bonds and assets that would likely default without the bailout.
Robert Citrone and Bessent worked together at Soros Fund Management, where Citrone says he helped make Bessent wealthy through a profitable 2013 currency trade. “Scott says I’m responsible for 75% of his bonus at Soros, kind of jokingly, over that time,” Citrone said in a May podcast appearance.
Argentine media outlets report that Citrone lobbied Bessent twice this year — first to secure a $20 billion IMF bailout in April, then again in September for direct US intervention after Argentina’s economy deteriorated and Citrone’s investments came under threat.
Discovery Capital returned 52% in 2024 betting on Argentine President Javier Milei’s libertarian reforms, and gained more than 20% through September 2025, according to Bloomberg. But when Milei’s party suffered a crushing defeat in provincial elections on September 7, investors dumped Argentine assets. Citrone purchased additional bonds in early September — days before Bessent announced the US bailout — raising questions about access to non-public information, according to Argentine journalist Ariel Maciel.
Bessent announced on Thursday that the Treasury had begun “directly purchasing Argentine pesos” to prop up the currency’s value, following what he described as “4 days of intensive meetings” with Argentine Economy Minister Luis Caputo in Washington. The direct purchases expose American taxpayers to losses if the peso depreciates, which economists consider likely given Argentina’s chronic instability.
“This trope that we are helping Americans with interests down there couldn’t be more false,” Bessent said on CNBC. He defended the intervention as advancing US strategic interests, arguing that Argentina represents a model of market-oriented reform for the region and that Washington should not allow the country’s economy to collapse.
The bailout has triggered unusual bipartisan criticism. Republican Senator Chuck Grassley of Iowa called it a betrayal of “America First” principles, noting it helps Argentina compete against struggling US soybean farmers. Democratic Senator Brian Schatz criticized the timing, pointing out the administration declined to prevent health insurance premium increases for millions of Americans while extending billions to Argentina.
“Donald Trump gets a two-fer here,” Senator Elizabeth Warren said. “He gets to bail out his political ally in Argentina, who is very unpopular and in big trouble, and his treasury secretary apparently gets to help his hedge fund buddies.”
Argentina owed the IMF over $40 billion before the 2025 bailouts. With the new lending, analysts project the IMF’s exposure will reach approximately $58 billion by 2026. The country has defaulted on its debts multiple times in recent decades.
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