Particle.news
Download on the App Store

Wall Street Banks Seek Guarantees for $20 Billion Argentina Loan as U.S. Targets $40 Billion Support

Negotiations remain unresolved pending clarity on backstops for a private credit line linked to a Treasury currency swap.

Overview

  • JP Morgan, Goldman Sachs, Citigroup and Bank of America are negotiating to lead a $20 billion facility for Argentina but are holding out for explicit guarantees and Treasury guidance, the Wall Street Journal reported.
  • The lending mechanism is not finalized and could be withdrawn if the question of guarantees is not resolved, according to the Journal’s sourcing.
  • Treasury Secretary Scott Bessent says the broader effort aims to mobilize about $40 billion, including a $20 billion currency swap, and describes it as an economic stabilization package.
  • Banks view the Treasury as directing the broader package and say they will not proceed without clear backing from Washington, the Journal reported.
  • Separately, JP Morgan confirmed a $6 million, five-year philanthropic commitment focused on youth jobs and participation in a bond repurchase program backed by the IDB and World Bank, while President Trump has linked the swap to a Milei party victory and analysts warn of peso and default risks.