Key facts
- Argentina will allow banks to lend more dollars to companies.
- Banks can lend up to 15% of their dollar deposits.
- The central bank will relax foreign-currency lending regulations.
- The measure aims to increase credit availability for businesses.
- The government hopes this will spur investment and job creation.
Argentina is set to implement measures allowing banks greater flexibility in lending dollars to companies, according to Economy Minister Luis Caputo. The initiative permits banks to lend up to 15% of their dollar deposits, a move intended to increase credit availability for businesses and stimulate economic activity. Caputo stated that industries such as automotive and construction have been requesting more flexible lending conditions, noting the difficulty businesses face with high peso interest rates. This policy complements ongoing tax reforms designed to encourage Argentines to bring undeclared savings into the formal financial system. The central bank will also relax regulations on foreign-currency lending, with authorities hoping these combined efforts will boost dollar-denominated credit, thereby encouraging investment and job creation. International Monetary Fund Managing Director Kristalina Georgieva had previously acknowledged Argentina's progress in curbing inflation under President Javier Milei's reforms but highlighted the ongoing pressure on certain sectors and the need for improved access to credit for businesses and households.