LONDON: The U.S. government's flagship development agency is in talks with Argentina's government about strategic investments in critical minerals and infrastructure that could also lower the South American country's debt profile.

The U.S. International Development Finance Corporation (DFC) posted on X late on Wednesday that it had held "productive meetings" with officials on the potential investments and lowering the country's "leverage profile".

The posts, which were liked by Argentina's Finance Secretary Pablo Quirno, provided no further details but added a "strong and stable" Argentina led by President Javier Milei was in the "direct strategic interest" of the U.S.

It comes in parallel with a package of support the U.S. has extended to Milei's government in recent weeks designed to stem a run on the peso ahead of crucial midterm elections on Sunday.

The DFC is also overseeing the critical minerals deal U.S. President Donald Trump struck with Ukraine earlier this year.

In the past it has also helped provide so-called debt swaps to the likes of Ecuador, Belize and El Salvador, where the countries committed to certain policies in order to have their debts reduced.

Earlier this week Argentina's Quirno said the country had also begun negotiations with multilateral agencies on a separate debt swap linked to improving the country's education system.