The Argentine government scrapped a restriction dating back to the 2001-02 crisis on Thursday, clearing the way for banks to lend their deposits in U.S. dollars to companies that do not earn foreign currency.
Economy Minister Luis Caputo called the decision a “partial easing” of the restriction, while the Central Bank (in Spanish, BCRA) described it as a loosening of its “prudential framework” for financing in foreign currency.
The resolution will be made official via a decree shortly.
Under the rules in force until now, banks could only lend dollars to companies that either generated foreign currency or could present a guarantee from one that did. The change enacted on Thursday means that the benefit is now open to all companies.
“This is specifically for companies. It does not include individuals,” Caputo told reporters at the economy ministry, flanked by Economic Policy Secretary José Luis Daza and Finance Secretary Federico Furiase.
