Article 1 of 2 A Bank of America building is seen in Los Angeles, California, U.S. May 6, 2019. REUTERS/Lucy Nicholson
Register here.
Bankers are awaiting guidance from the Treasury Department on what guarantees Argentina would be able to provide them or whether Washington would consider supporting the mechanism on its own, the report said, citing people familiar with the matter.
The loan mechanism has not been finalized and may not be put in place if the issue of bank guarantees is not resolved, the report said.
“Discussions on this facility are continuing and we look forward to sharing more details once these negotiations are completed,” a U.S. Treasury spokesperson told Reuters.
Goldman Sachs declined to comment, while JPMorgan Chase, Bank of America and Citigroup did not respond to Reuters requests for comment.
The U.S. facilities also raise the possibility of a conflict between the IMF and the Treasury Department, with fund officials concerned that the Trump administration will pressure Argentina to prioritize U.S. bonds ahead of large IMF loans, according to the WSJ report.
The IMF did not immediately respond to a Reuters request for comment.
Reporting by Anusha Shah and Ruchika Khanna in Bangalore; Editing by Maju Samuel, Subhranshu Sahu and Alan Barona
Our Standards: The Thomson Reuters Trust Principles.
