U.S. Banks Seek Collateral Before Finalizing $20B Argentina Loan

Benzinga

U.S. banks are struggling to finalize a $20B loan to Argentina under Trump’s $40B support plan for President Milei. The move has strained relations with the IMF, as Argentina faces record debt and persistent inflation.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Major U.S. banks are struggling to arrange a $20 billion loan to Argentina while seeking

00:06safeguards against potential losses from the country's dire finances, according to the

00:10Wall Street Journal.

00:11Loans are part of the Trump administration's $40 billion plan to support President Javier

00:15Malay's government through a $20 billion treasury swap and a $20 billion bank loan.

00:20Argentina's long shutout of global markets has relied on borrowing and money printing

00:24to fund deficits, causing runaway inflation and nine sovereign defaults since 2000.

00:28Treasury's independently developed rescue plan for Argentina has created tension with

00:33the IMF, which is typically a U.S. partner in such efforts.

00:36IMF officials concerned about being subordinated to U.S. claims noted that Argentina already

00:41owes the fund nearly $60 billion, its largest debt to any single country.

00:45For all things money, visit Benzinga.com.

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