The deal with Javier Milei shows how America-first dealmaking is bending global finance to serve authoritarian and extractive ends

It is famed for hard-nosed bargaining with crisis-hit countries, so why did the International Monetary Fund throw a $20bn lifeline to the serial defaulter Argentina – despite alarm on its board? The answer is that the country’s rightwing leader, Javier Milei, is Donald Trump’s “favourite president”. Amid unease over handing a third of the IMF’s global lending to its largest debtor, the deal passed with $12bn upfront. The IMF has long been intellectually compromised – promoting stability while enforcing neoliberal orthodoxy. Under Mr Trump, it is ethically compromised too.

Mr Milei’s bailout marks the second Trump-era rescue for Argentina. In 2018, the fund handed Buenos Aires a record $57bn – but cut it off when its then president, Mauricio Macri, a Trump family friend, was not re-elected. That deal now looks nakedly political. With the US holding an effective board veto, the fund’s independence was always fragile. It’s now completely subordinated. A US takeover of the IMF threatens deeper instability than any Argentinian default.

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