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Thousands Protest Record Household Debt in Argentina, Blame Austerity
🇨🇭 Switzerland /Economy & Trade

Thousands Protest Record Household Debt in Argentina, Blame Austerity

From Le Temps · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

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  • Thousands of Argentines protested against record household debt, blaming austerity policies under President Milei.
  • Union and left-wing party members called for state intervention to restructure debt and regulate exorbitant interest rates.
  • Defaults have tripled in a year, affecting 5.8 million Argentines and reaching levels not seen since the 2021 crisis.

Thousands of Argentines marched on Thursday outside the Ministry of Economy to protest record household debt, which unions attribute to the Milei government's austerity measures. The demonstration, called by unions like the CGT and small left-wing parties, occupied a section of the Plaza de Mayo, which was partially blocked by riot barriers and a heavy police presence.

I'm just another Argentine with debts. I'm self-employed, and honestly, it's getting harder and harder to cope day by day.

— Mariano AlmeydaA 47-year-old lawyer participating in the protest described his personal financial struggles.

Recent data from the Central Bank's Debtor Center shows that defaults have tripled in the past year, reaching 12.8% in May and affecting 5.8 million Argentines. These figures are unprecedented since the major crisis of 2021. Protesters are demanding state intervention to restructure household debt and regulate exorbitant, triple-digit interest rates charged by informal lenders to those without access to banking credit.

People, when they need credit because they lose their jobs, turn to these usurious loans. There's an inequality situation the government should intervene in.

— Mariano AlmeydaThe lawyer explained the cycle of debt and the need for government intervention.

"I'm just another Argentine with debts. I'm self-employed, and honestly, it's getting harder and harder to cope day by day," Mariano Almeyda, a 47-year-old lawyer participating in the protest, told AFP. "People, when they need credit because they lose their jobs, turn to these usurious loans. There's an inequality situation the government should intervene in."

The debt of families is a new pandemic for Argentina.

— Jorge SolaThe CGT co-secretary-general described the severity of the household debt crisis.

President Javier Milei, in power since late 2023, has previously stated that debt is "a private matter" in which the state should not intervene, particularly not through restructuring or refinancing. However, the CGT's co-secretary-general, Jorge Sola, described household debt as "a new pandemic for Argentina" this week. He reiterated on Thursday that it is "not a private affair, but a consequence of the government's economic policy."

Not a private affair, but a consequence of the government's economic policy.

— Jorge SolaThe union leader rejected the government's view that debt is solely a private matter.
DistantNews Editorial

Originally published by Le Temps in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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