U.S. Banks Hesitate on Argentina Bailout Over Collateral Concerns

​Wall Street Wants Guarantees
A group of major U.S. banks — including JPMorgan Chase, Bank of America, Goldman Sachs, and Citigroup — is reluctant to move forward with a $20 billion lending package for Argentina without solid guarantees. The lenders want clear collateral commitments before backing the bailout plan being developed with the U.S. Treasury Department.

Treasury Secretary Scott Bessent confirmed last week that Washington is helping assemble a $20 billion facility to support Argentina’s sovereign debt. But bankers reportedly want to know whether the U.S. government itself will backstop the deal or if Buenos Aires can provide tangible assets.

Negotiations in Limbo
Talks between the Treasury and financial institutions are ongoing, but the deal could collapse if the collateral issue remains unresolved. A Treasury spokesperson said the discussions “remain ongoing” and that more details will be shared once an agreement is reached.

Meanwhile, Argentina’s central bank said it has signed a $20 billion exchange rate stabilization agreement with the Treasury, which effectively doubles total U.S. support to $40 billion for Latin America’s third-largest economy. The Treasury has also begun buying Argentine pesos in the open market to help steady the currency.

IMF Tensions Simmer
The proposed U.S. funding plan is already sparking concern within the International Monetary Fund. Officials fear the Trump administration could pressure Argentina to prioritize repaying U.S.-backed liabilities over the IMF’s existing loans, potentially creating a conflict between Washington and the Fund.

Neither the IMF nor the involved banks have commented publicly on the issue, but insiders suggest any misalignment between the two could complicate Argentina’s fragile economic recovery.

The Bottom Line
​While Washington is eager to bolster Argentina’s finances, Wall Street isn’t taking chances. Until the collateral question is answered, the $20 billion rescue package may stay stuck in negotiation limbo — a reminder that even bailouts come with fine print.