Argentina's $20 billion loan plan is encountering obstacles, multiple US banks are requesting clear guarantee measures from the US Treasury.

According to sources, a group of American banks including JPMorgan Chase, Bank of America, and Goldman Sachs are hesitant to provide a $20 billion loan to Argentina without collateral or guarantees. US Treasury Secretary Scott Benett stated last week that the department is working with banks and investment funds to create a $20 billion financing mechanism to invest in the South American country's sovereign debt. Sources revealed that bankers are waiting for guidance from the Treasury Department on what collateral Argentina can provide or whether Washington plans to support the financing mechanism on its own. Sources said that the financing mechanism has not been finalized yet, and if the issue of collateral from banks is not resolved, it may not come to fruition. A spokesperson for the US Treasury Department stated: "Discussions regarding the mechanism are ongoing, and we look forward to providing more details once negotiations are complete." JPMorgan Chase, Bank of America, Goldman Sachs, and Citigroup did not immediately respond to requests for comment. The Central Bank of Argentina announced on Monday that it had signed a $20 billion currency stabilization agreement with the US Treasury, bringing the total US support for the third-largest economy in Latin America to $40 billion. The Treasury Department has also purchased Argentine pesos in the open market. Sources pointed out that these financing mechanisms from the US also increase the possibility of a conflict between the International Monetary Fund and the US Treasury, as IMF officials are concerned that the Trump administration may pressure Argentina to put US debt before the IMF's large loans.