Argentina: Government eases restrictions on dollar lending for businesses

In Argentina, the government of ultraliberal president Javier Milei announced a flexibilization of restrictions on lending to all businesses.

Thanks to this initiative, the banks will be able to lend up to 15% of their deposits in foreign money, without limiting themselves to companies that generate money or pay with guarantees.

This product responds to the demands of different sectors, in particular construction, which sells in dollars and generates an important number of employees, as well as the automotive sector.

"Now, the banks can only lend to companies that generate dollars or those that have guarantees of companies that generate dollars. Now, we extend this possibility to all companies, but within a macroprudencial limit. The banks can only lend up to 15% of the deposits in dollars", explained the Minister of Economy, Luis Caputo, in a press conference.

The changes will be formalized in a Decree of Necessity and Urgency which will be published today in the Official Diary, while the Central Bank of Argentina will adjust the prudential mark for financing in foreign money.