Argentina to ease bank dollar lending to companies, economy minister says

Argentina’s economy minister announced plans to relax restrictions on bank lending in U.S. dollars to companies, a step intended to ease corporate financing amid tight credit conditions.

The policy adjustment, disclosed by the minister in a public statement, follows efforts by the central bank to bolster foreign exchange reserves and stabilize the financial system. The easing of rules is expected to provide businesses with greater access to dollar-denominated credit, which has been constrained by previous capital controls and regulatory limits.

The move comes as Argentina grapples with persistent economic challenges, including inflation above 200% and limited access to international capital markets. Analysts suggest the relaxation could support trade financing and investment, particularly for sectors reliant on imported inputs.

The central bank has not provided immediate details on the scope or timeline of the changes. The announcement follows recent adjustments to foreign exchange policies aimed at managing the gap between official and parallel exchange rates.

The government has emphasized the need to balance currency stability with economic growth, though critics warn that easing dollar lending could further pressure already strained foreign exchange reserves.