By Leila Miller
BUENOS AIRES, Aug 13 (Reuters) – Argentina will allow more flexibility for banks to lend dollars to companies, Economy Minister Luis Caputo told reporters on Thursday.
He said that the measure is intended to increase the amount of credit available to businesses, and that banks will only be able to lend up to 15% of their dollar deposits.
During her visit last month to Argentina, International Monetary Fund Managing Director Kristalina Georgieva applauded President Javier Milei’s economic reforms for helping to curb inflation, but said that some sectors remained under pressure, adding that Argentina needed to improve conditions for businesses and households to gain access to credit.
“We think this is a measure that will benefit everyone,” said Caputo, adding that it would help to “reactivate the economy.”
Caputo added that the auto and construction industries, among others, had been asking for more flexible lending. He said that high interest rates in pesos have been hard on business owners.
According to the government, the measure complements tax reforms aimed at encouraging Argentines to bring undeclared savings held in cash or overseas accounts into the formal financial system.
Argentina’s central bank said on Thursday it would relax regulations governing foreign-currency lending following changes approved by the government. Authorities hope that bringing those funds into banks will boost the availability of dollar-denominated credit for companies, helping spur investment and job creation, Caputo said.
(Reporting by Leila Miller, Editing by Daina Beth Solomon and Lucinda Elliott)
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