U.S. Banks, Treasury Eye $20 Billion Lifeline for Argentina

This article first appeared on GuruFocus.

Some of America's biggest banks are in early talks with the U.S. Treasury Department to put together as much as $20 billion in emergency loans for Argentina, according to a Semafor report on Thursday. The discussions come just days after Washington finalized a $20 billion currency swap deal with Buenos Aires and now, officials are trying to double that total support to around $40 billion by bringing private lenders and sovereign funds into the mix.

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JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), and Citigroup (NYSE:C) are among the banks involved in the talks, which would see loans backed by Argentine assets, people familiar with the discussions said. The goal is to shore up Argentina's struggling economy and support President Javier Milei's pro-market reform push.

But there's a political wrinkle. U.S. President Donald Trump has reportedly warned he could withdraw support if Milei doesn't come out on top in Argentina's October 26 midterm elections casting a shadow over the negotiations.

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