Negotiations between global banks and Argentina to obtain a $20 billion loan supported by the US Treasury Department
US media reports revealed that a number of major US banks, including JP Morgan, Bank of America, Goldman Sachs, and Citigroup, are in talks with the US Treasury Department to provide a loan package worth up to $20 billion to support Argentina’s struggling economy.
This move comes as part of a broad US initiative aimed at enhancing financial stability in Argentina, which is facing record inflation rates and a severe exchange rate crisis.
US Treasury Secretary Scott Bessent said the department is working with banks and investment funds to establish a $20 billion credit facility to purchase and restructure Argentine sovereign debt.
He explained that this financing will complement a new currency swap line of similar value between Washington and Buenos Aires.
This brings the total US financial support to $40 billion, the largest of its kind since the economic crisis that struck Argentina in 2001.
Bessent added that this move aims to boost confidence in Argentine financial markets and provide a monetary cushion that will allow the government to implement gradual reforms without causing widespread social shocks.
In a related development, Reuters quoted an informed source as saying that Citigroup sold the Argentine peso to the US Federal Reserve as part of the Treasury Department’s new program, in a transaction described as part of technical arrangements to support the stability of the local currency.
The US banks involved declined to comment on the reports, and the Argentine government declined to make any official statements on the matter.
For his part, US President Donald Trump stated that the United States “won’t waste its time with Argentina” if President Javier Milei’s party loses the parliamentary elections scheduled for October 26.
However, the US Treasury Secretary affirmed that Washington will continue to support Argentina as long as it adheres to disciplined and rational economic policies, regardless of the election results.
Argentina is facing annual inflation exceeding 250% and a sharp decline in the value of the Argentine peso, leading to rising prices and a decline in citizens’ purchasing power.
Milei’s government hopes the US aid package will help calm markets and restore investor confidence after years of economic turmoil.
Analysts believe the US plan represents a significant shift in the stance of Milei’s government, which has been characterized by volatility and defiance toward international financial institutions, but which now demonstrates an increasing willingness to cooperate with Washington and the International Monetary Fund.
