They want hard collateral or U.S. government guarantees before finalizing the deal.
A group of banks including JPMorgan Chase, $JPM, Bank of America, $BAC, and Goldman Sachs, $GS, is struggling to put together a $20 billion loan to Argentina without leaving themselves on the hook to the virtually bankrupt South American country, per WSJ
— unusual_whales (@unusual_whales) October 21, 2025
Major US banks are reluctant to lend $20 billion to Argentina without firm guarantees or Treasury backing.
The proposed debt facility remains uncertain as discussions over collateral continue.
IMF officials worry US support could take priority over the Fund’s existing loans.
Major US banks, including JPMorgan Chase, Bank of America and Goldman Sachs, are reportedly refusing to lend Argentina $20 billion without explicit assurances or collateral, according to The Wall Street Journal.
The reluctance highlights the difficulties fending off attempts to stabilise the South American nation’s finances as its economy falters and relations with foreign lenders sour.
That caution among banks has to do with certainty about what collateral Argentina would offer for the credit.
According to the Journal, bankers are waiting for the US Treasury Department to clarify whether the Argentine government would be required to provide collateral, or whether Washington would actually backstop the move.