Milei says government not to blame for Argentina's rising debt

Argentine President Javier Milei asserted that the government bears no responsibility for the increasing rate of household debt and late payments in the country. He argued that there are "no elements to blame the Government's policy" for the situation, where many families struggle to cover daily expenses with their income.

Speaking at the 142nd anniversary of the Rosario Stock Exchange, Milei suggested that individuals unable to access formal credit markets are turning to riskier, higher-interest options. "Isn't it normal that if I'm going to take more risk, I'm going to ask for more return? Obviously, a riskier transaction will include a higher interest rate," he explained, referencing high interest rates charged by non-financial providers like Mercado Libre's virtual wallet.

Data shows that household debt in arrears reached 17.5% in June, marking the 20th consecutive monthly increase. The debt in the non-financial credit sector is even higher, at 31%, more than double that of the financial system. The Center for Economic Studies of Banco Provincia identified insufficient income, due to falling purchasing power, job losses, or rising fixed expenses, as the primary driver of this trend.

Conversely, major labor unions and opposition parties have criticized the government's economic policies. They argue that the rising debt is not a private matter but a direct consequence of government actions. Unions mobilized to the Ministry of Economy, stating that "indebtedness is not a private matter but a Government policy." Opposition lawmakers are proposing legislation to assist individuals with over 365 days of payment arrears, a segment that constitutes 35% of the total overdue payments.