Argentina Will Ease Bank Dollar Lending to Companies, Economy Minister Says
Banks may lend dollars to firms without dollar earnings, with lending capped at 15% of dollar deposits, Economy Minister Luis Caputo said.
- On Thursday, Economy Minister Luis Caputo announced that Argentina will allow banks to lend dollars to companies, with banks permitted to lend up to 15% of their dollar deposits.
- Caputo stated the policy intends to utilize idle dollars at record levels to boost investment and job creation, addressing difficulties business owners faced from high peso interest rates.
- The measure complements tax reforms encouraging Argentines to bring undeclared savings held overseas or in cash into the formal financial system, which authorities hope will increase dollar credit availability.
- Caputo noted that auto and construction industries had requested more flexible lending, saying "We think this is a measure that will benefit everyone" and will help "reactivate the economy."
- International Monetary Fund Managing Director Kristalina Georgieva recently applauded President Javier Milei's reforms for curbing inflation, though she emphasized the need for improved conditions for businesses to access credit.
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Argentina will ease bank dollar lending to companies, economy minister ...
The Minister of Economy said that the industry "came asking" for loans to be speeded up.In addition, he again ruled out a bailout for the defaulters: "You don't have to confuse empathy with public policies."
la Nacion
BAE NegociosThe government seeks to channel to companies part of the nearly $7 billion that banks now have available in foreign currency; the bill expands the universe of companies that will be able to access finance
Today the Minister of Economy will give a press conference at 3 p.m. where he will give details of the changes. Bausili advanced and the requests of the banks
The government measure makes financing conditions more flexible and allows banks to lend up to 15 per cent of their dollar deposits to companies that do not invoice in that currency.
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