Argentina eases dollar loan rules, minister calls fintech rates 'abusive'

Argentina's government is set to relax rules on dollar-denominated credit, enabling banks to lend a portion of their dollar deposits to companies that primarily earn revenue in pesos. This measure aims to expand available financing and stimulate economic activity, particularly as peso-denominated loans are contracting and experiencing historically high default rates. The government seeks to deepen the credit segment that is currently experiencing growth.

Economy Minister Luis Caputo linked the decision to the persistent high cost of financing in local currency, stating that "peso rates are still high," which hinders the profitability of many projects. He anticipates the move will "generate more credit, lower interest rates, create more jobs, and help reactivate the economy." Caputo also addressed the elevated costs faced by some users outside the traditional banking system, describing fintech rates reaching 400% or 700% as "abusive." However, he dismissed the possibility of government intervention to cap these rates, asserting, "There is nothing stopping them from doing it today. It is a matter between private parties."

Data from First Capital Group indicates that outstanding peso loans to the private sector in July stood at 104.1 trillion pesos, a real decrease of 1% from June and 1.3% year-on-year. In contrast, dollar-denominated financing surged by 4.7% monthly and 45.1% annually, reaching $24.829 billion. The decline in peso lending is particularly pronounced for households, with personal loans showing no real growth above inflation for ten consecutive months and a 5.4% real annual decrease in July. Credit card financing also fell 3.7% in July and 9.8% year-on-year. Commercial loans saw a slight real monthly decrease of 0.3%, while mortgages were an exception, growing 2.3% above inflation.

Guillermo Barbero, a partner at First Capital Group, noted that "we are having another month with negative real results. The increase shown last month could not be consolidated as a new trend, and a downward path is maintained throughout the current year." He observed that "borrowers are turning to operations denominated in foreign currency" for commercial loans. The opposite trend is seen in dollar loans, with a 4.7% increase in July alone and a 45.1% cumulative growth over the past twelve months. Commercial operations account for three-quarters of all dollar loans. Barbero stated, "Demand prioritized foreign currency operations this month once again, just as it did during 2026." The flexibilization announced by Caputo aims to extend this trend to companies previously unable to access bank dollar deposits, a restriction in place since the 2001 crisis.

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Va a generar mayor crédito, va a generar una baja en el nivel de tasas, va a generar mayor empleo y va a ayudar a reactivar la economía