While JP Morgan and Citi land in Buenos Aires, Wall Street entities demand guarantees to advance with the financing package promoted by the US Treasury, which has already committed a total support of US$40,000 million to Argentina.
The top executive of JP Morgan Chase, Jamie Dimonand Jane Fraser, the Executive Director of Citi, will visit Argentina this Wednesday, in a context marked by the strong support from the United States to the administration of Javier Milei. In parallel, it was learned that the largest bank on Wall Street is participating in the negotiations for an eventual financial assistance package for the country with the participation of private capital.
Although still A meeting with government officials has not been confirmed.it is not ruled out that it could take place during your stay. What is planned is that Dimon holds a meeting with the local JPMorgan team in Buenos Aires this Wednesday.
The banker’s visit occurs at a time of close alignment between the Argentine Government and the White Houseand coincides with the bank’s global expansion plans. Recently, JPMorgan announced investments for US$1.5 trillion in four large sectors and 27 strategic subsectors—among them mining, energy and industrial goods—with the objective of support US companies in developing secure supply chains.
US banks ask for guarantees to grant the US$20 billion loan
A group of major US banks, including JPMorgan Chase, Bank of America and Goldman Sachsare reluctant to grant a loan for US$20,000 million to Argentina without having guarantees or endorsements, reported the The Wall Street Journal.
The US Secretary of the Treasury, Scott Bessent, had indicated last week that the Department was working together with financial entities and investment funds to create a financing line for US$20,000 millionintended for invest in Argentine sovereign debt.
According to sources cited by the WSJthe banks await definitions from the Treasury on What kind of support could the Argentine Government offer? or yes Washington will directly assume the risk of the operation. At the moment, the loan it is not closed and might not materialize if the guarantee scheme is not resolved.
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A US Treasury spokesperson confirmed to Reuters that “Talks are ongoing” and that more details will be provided once negotiations are completed. Goldman Sachs declined to comment, while JPMorgan, Bank of America and Citigroup They did not respond to queries.
In parallel, the Central Bank of the Argentine Republic (BCRA) announced this Monday the signing of an exchange stabilization agreement with the United States Treasury for the same amount of US$20,000 millionraising to US$40,000 million the total of American support for the local economy. Furthermore, the Treasury would have begun to buy Argentine pesos on the open marketaccording to official sources.
The agreement generates concern within the International Monetary Fund (IMF)where some officials fear that the administration of donald trump search prioritize commitments with the United States over those of the Fundgiven the magnitude of the loans at stake, indicated the Wall Street Journal.
Source: Ambito
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