Argentina Eases Bank Rules for U.S. Dollar Lending

The Argentine government is easing regulations to provide companies with greater access to foreign-currency credit. Luis Caputo, the Economy Minister, announced on Thursday that banks are now permitted to lend up to 15% of their U.S. dollar deposits to businesses.

The measure seeks to increase available credit and stimulate job creation and investment, specifically targeting the auto and construction industries that have been hindered by high interest rates on the peso. This policy aligns with broader tax reforms intended to incentivize the movement of undeclared cash and overseas savings into the formal financial system.

The regulatory shift follows guidance from International Monetary Fund Managing Director Kristalina Georgieva. Georgieva previously advised that Argentina must improve credit access for households and businesses to build upon the inflation-curbing reforms implemented by President Javier Milei.