Argentina eases dollar loan rules for businesses

Argentina's Executive Branch has officially eased rules for dollar-denominated loans, allowing banks to lend out part of their foreign currency deposits to businesses. This move, published via Decree 736/2026, permits banks to use these funds for financing companies that earn income directly or indirectly from foreign trade and related activities, as well as for other legal entities. The regulation takes effect immediately upon publication.

Announced by Economy Minister Luis Caputo, the initiative targets an increase in available financing for the private sector to stimulate investment and economic activity. The government noted that while private sector deposits in foreign currency total $39.336 billion, loans to the private sector in foreign currency stand at $23.716 billion. A significant portion of these deposits remain idle, either in cash or earning low returns at the Central Bank.

The government stated that channeling these savings through the financial system is crucial for Argentina, a country where savings are largely dollarized due to decades of macroeconomic and contractual instability. This measure aims to contribute to poverty reduction and improve living conditions for Argentines affected by past policies. The decree seeks to immediately relax restrictions, promote investment, and foster economic growth, aligning with efforts to stabilize the macroeconomy and eliminate previous economic challenges.