Overview
- The BCRA president, Santiago Bausili, said on Thursday that the government will not launch a rescue program for borrowers in arrears and that debt renegotiation should be handled between banks and clients.
- Officials told journalists that measured delinquency has stopped rising and that moving a deeply past‑due account back to current status is a slow process that can take about nine months of continuous payments.
- The central bank ruled out short‑term cuts to reserve requirements (encajes), saying reserves and liquidity are at adequate levels and that it will prioritize accumulating foreign currency to protect price stability.
- Bausili flagged roughly US$7 billion of idle dollar liquidity sitting as excess dollar encajes and opened a guarded debate about loosening rules for dollar lending while stressing legal and systemic risks and making no immediate regulatory changes.
- The stance aligns with President Javier Milei’s economic team rejecting subsidies or monetary financing; critics warn leaving solutions to private negotiation risks wider contagion if individual distress becomes systemic.