Argentina’s opposition calls lower-house session to seek relief for indebted families

Argentina’s opposition is taking its push for relief for indebted families to the Chamber of Deputies, but the first battle will be over whether lawmakers can even open the session. Radical lawmaker Pablo Juliano requested a special sitting for Wednesday, Sept. 9, at noon, setting up a confrontation with the government camp over the quorum.

The agenda lists more than 50 initiatives. Among them are measures to amend labor-contract rules protecting salary accounts from seizure, declare a credit emergency for indebted families, and establish a special system for debtors to restructure and ease their financial burdens. The agenda also includes extending the national disability emergency until the end of 2027.

The proposals come as household repayment problems continue to spread. The article cites estimates that around six million people are currently behind on their debts to banks, digital wallets and finance companies. A report by consulting firm 1816, based on data from the Central Bank’s Debtors Registry, said total private-sector delinquency rose from 7.63% to 7.73% in July.

Households remain the main pressure point. Family delinquency reached 12.94%, compared with 3.61% for companies. The article says household delinquency stood at 2.5% in October 2024 and increased at 23 of the country’s 30 largest banks. To absorb the strain, the financial system has turned to a record wave of refinancing. Households have already refinanced 2.6 trillion pesos in debt, while refinanced loans account for 3.7% of total household lending.

The situation is more severe outside traditional banks. Non-bank credit providers, a segment led by Mercado Pago and Tarjeta Naranja that accounts for 54% of that market, recorded a delinquency rate of 33.69%. The government of President Javier Milei has repeatedly rejected calls for intervention, arguing that the problem lies between private parties and should be resolved through the market. The opposition is now seeking legislative action instead.