U.S. Banks Wary of Argentine Loan Proposal

U.S. banks, including JPMorgan Chase and Goldman Sachs, are hesitant to lend $20 billion to Argentina without guarantees. The U.S. Treasury is working on a facility to invest in Argentine debt, but concerns remain about collateral, possibly causing conflicts with the IMF.

Major U.S. banks, such as JPMorgan Chase and Goldman Sachs, are expressing hesitation over a $20 billion loan to Argentina, pending collateral assurances. The Wall Street Journal reported uncertainties that could hinder the deal unless resolved swiftly.

U.S. Treasury Secretary Scott Bessent noted efforts to craft an investment facility designed to support Argentina's sovereign debt. However, banks are awaiting clearer collateral commitments from either Argentina or guarantees from the U.S. Treasury.

Additionally, Argentina has entered a $20 billion exchange rate stabilization deal with the U.S. Treasury. The situation raises concerns about a conflict with the IMF, which fears potential U.S. pressure to prioritize its liabilities over existing IMF loans.

(With inputs from agencies.)