Argentina will let banks lend dollars to companies with more flexibility, Economy Minister Luis Caputo said. Banks will be permitted to lend up to 15% of their dollar deposits to businesses, a step Caputo said would help reactivate the economy alongside tax reforms meant to draw undeclared savings into the formal financial system.
Argentine banks will be allowed to lend dollars to companies with more flexibility, Economy Minister Luis Caputo said. Under the new rules, lenders can extend up to 15% of their dollar deposits to businesses. Caputo said the policy would help reactivate the economy and benefit everyone.
He noted that industries including automotive and construction had requested more flexible lending options, as high peso interest rates have created difficulties for business owners. The government said the measure works together with tax reforms designed to encourage Argentines to move undeclared savings held in cash or overseas accounts into the formal financial system.
Last month, International Monetary Fund Managing Director Kristalina Georgieva praised President Javier Milei's economic reforms for helping reduce inflation during a visit to Argentina. She said some sectors remained under pressure and that Argentina needed to improve credit access conditions for businesses and households.
Source: Investing.com
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