UPDATE 3-Argentina, Wall Street banks in talks on financing line
(Adds ministry comment on financing talks, details debt negotiations, China currency swap)
By Jorge Otaola and Nicolás Misculin
BUENOS AIRES Dec 11 (Reuters) - Argentina's new government is negotiating with a group of Wall Street banks for a credit line worth up to $7 billion to bolster its low foreign reserves and help it eventually lift capital controls, a banking source said on Friday.
President Mauricio Macri, who took office on Thursday, wants to move quickly to remove currency controls that restrict access to U.S. dollars but is stymied by the central bank's precariously low hard currency reserves.
The commercial banking source said Argentina was in talks with HSBC, JPMorgan Chase & Co., Goldman Sachs , Deutsche Bank and Citigroup Inc.
But he said there remained obstacles to an agreement and that no immediate deal was likely.
"The banks are working on a deal. It would be difficult for anything to come about immediately. There are some key details needed to close this out that are missing," said the source, without giving more details.
A finance ministry spokeswoman confirmed Finance Secretary Luis Caputo had met with banks in New York earlier this week and that the government was happy with the talks so far. Finance Minister Alfonso Prat-Gay declined to give details.
"We're negotiating different financing options so that the dollars that should never have left the country come back as quickly as possible," Prat-Gay told reporters after unveiling his team. Continuación...