Argentina's public banks launch debt refinancing lines

Argentina's public banks are stepping in to address widespread financial struggles, with Banco Nación and Banco Ciudad introducing new programs to help individuals and families manage and refinance their debts. These initiatives aim to prevent defaults and improve borrowers' repayment capacity.

Banco Nación, the country's largest financial institution, has launched a personal loan specifically designed for debt consolidation. This offer is available to clients with overdue payments within the bank, provided they are in credit situation 1 or 2. The program allows for financing up to 100% of the consolidated debt, with a ceiling of 100 million pesos and repayment terms extending up to 10 years. Borrowers can choose between a 10% annual interest rate plus UVA or an additional percentage point if opting for CER-CVS coverage.

Meanwhile, the Buenos Aires legislature has approved a Family and Personal Debt Relief Program, to be initially managed by Banco Ciudad. This program targets debtors in credit situations 2 or 3, meaning those with payment delays ranging from 30 days to six months. The bank will offer a maximum annual interest rate of 35% and a minimum repayment period of 24 months. Eligibility criteria include residing in the City of Buenos Aires for at least two years, having household incomes below ten minimum, vital, and mobile wages, and debt commitments exceeding 30% of household income. Certain exclusions apply, such as owning multiple properties, newer vehicles not used for work, luxury assets, or having acquired foreign currency during the period the debts were incurred.