FILE PHOTO: U.S. Treasury Secretary Scott Bessent attends a meeting between U.S. President Donald Trump and Argentina's President Javier Milei (both not pictured) during the 80th United Nations General Assembly, in New York City, New York, U.S., September 23, 2025. REUTERS/Al Drago/File Photo

WASHINGTON (Reuters) -The U.S. is currently in negotiations for a $20 billion swap line with Argentina's central bank and stands ready to do what is needed to support the country, U.S. Treasury Secretary Scott Bessent said on Wednesday in a post on X.

Bessent said the U.S. is prepared to purchase Argentina’s U.S. dollar-denominated bonds and will do so as conditions warrant. The U.S. is also set to deliver significant standby credit via the Exchange Stabilization Fund, he said.

"Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina's markets for political objectives," he said.

Bessent also said the U.S. is ready to purchase secondary or primary government debt and is working with the Argentine government to end the tax holiday for commodity producers converting foreign exchange.

Bessent said in an interview on Fox Business Network on Wednesday that he did not think the market had lost confidence in Argentine leader Javier Milei, Trump's right-wing ally.

"Thank you President Donald Trump and Mr. Secretary Scott Bessent for your firm support and confidence in the Argentine people," Milei said in response on X.

"We value deeply our friendship with the United States and your commitment to strengthen our partnership on the basis of shared values. Together we will build a path of stability, prosperity, and freedom. MAGA!"

Argentina's government bond prices rallied after Bessent announced details of support, with the country's 2030 issue up more than two cents.

"Well, what more can be added than thank you Secretary Scott Bessent," Argentina's Economy Minister Luis Caputo wrote on X. "Let's all work together to make our country great again!"

(Reporting by Susan Heavey and Maiya Keidan; Additional reporting by Aida Pelaez-Fernandez; Editing by Katharine Jackson and Andrea Ricci)