The Argentine government has officially implemented a measure allowing banks to lend portions of foreign currency deposits to businesses, even those generating income in pesos. This policy was announced through Decree 736/2026 published in the Official Gazette, as outlined by Economy Minister Luis Caputo. The decree permits the creation of foreign currency accounts, both current and time deposits, with funds derived from these accounts being used exclusively for financing entities engaged in international trade or related activities, as well as for loans to other legal persons, under guidelines set by the Central Bank. The measure comes into effect immediately upon publication in the Official Gazette. According to official figures, private sector deposits in foreign currency amount to approximately USD 39.3 billion, while foreign currency loans to the private sector stand at around USD 23.7 billion. The government noted that a significant portion of these deposits remains idle or earns minimal returns, highlighting the need for better utilization of these resources. The initiative aims to channel savings into the financial system, supporting economic growth and investment, particularly after years of macroeconomic instability and a predominantly dollarized economy. The decree was signed by President Javier Milei and several key ministers, including Diego Santilli, Pablo Quirno, Carlos Presti, Luis Caputo, Juan Bautista Mahiques, Alejandra Monteolova, Mario Lugones, Sandra Pettovello, and Federico Sturzenegger. It reflects the administration’s broader strategy to liberalize financial regulations and stimulate economic activity following recent efforts to stabilize the economy and reduce regulatory barriers. Meanwhile, the government faces criticism over its handling of widespread debt crises affecting millions of households. Over six million individuals have outstanding debts, many of whom were forced to borrow to cover essential expenses such as food, medicine, utilities, and housing. Debt levels have surged dramatically, with personal loan defaults rising from 3.3% in October 2024 to 14.9% in April 2026. Credit card irregularities have increased sevenfold during the same period, indicating a deepening crisis. Critics argue that the government's policies, including sharp currency devaluation and austerity measures, have eroded household incomes, forcing families to take on unsustainable debt. Despite claims that this is a private issue, data shows that the majority of borrowing was necessary to meet basic living costs. The situation has been exacerbated by deregulation of interest rates, enabling financial institutions to offer predatory lending terms. As a result, households are paying far more than they borrowed, with interest payments consuming 24.1% of total wages. This growing crisis has sparked public outrage and calls for state intervention. Activists and journalists accuse the administration of failing to address the root causes of the debt problem, which they attribute to deliberate economic policies aimed at reducing public spending. The government, however, maintains that economic growth is driven by sectors such as oil and mining, alongside the expanding financial industry. Critics counter that this growth is built on the backs of struggling families, whose labor is increasingly funneled into servicing debt rather than sustaining livelihoods. The administration's approach has also drawn scrutiny over its internal dynamics. President Milei often operates in isolation, rarely appearing publicly and relying heavily on his sister for communication. This has raised concerns about the lack of transparency and empathy within the government, especially regarding pressing social issues. Recent decisions, such as the dissolution of the National Children's Choir, have further fueled accusations of indifference toward cultural and social institutions. These actions underscore a perceived disconnect between the ruling elite and the everyday struggles of Argentinians.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €4/month.
Become a Supporter
AR
