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Banks Press Washington for Guarantees on $20 Billion Argentina Loan

The proposed $40 billion package pairs a Treasury currency swap with a bank-led credit line that remains unresolved due to lenders’ demand for guarantees.

Overview

  • JPMorgan, Goldman Sachs, Citigroup and Bank of America are seeking explicit guarantees or U.S. guidance before committing to a $20 billion syndicated facility for Argentina.
  • A Treasury spokesperson said talks continue, following Secretary Scott Bessent’s outline of a broader $40 billion stabilization effort that includes a $20 billion currency swap.
  • Reporting says banks believe they cannot proceed without Washington’s backing and warns the loan mechanism could fail if the guarantee question is not resolved.
  • J.P. Morgan announced a $6 million philanthropic program focused on youth employment, its CEO Jamie Dimon is visiting Buenos Aires, and the bank is involved in a government bond repurchase backed by the IDB and World Bank.
  • Coverage ties the negotiations to legislative elections in Argentina, with some reports describing U.S. support as conditioned on a Milei win as the peso weakens.