Government implemented measures on credit, wages and utilities to boost consumption

The Government implemented in recent weeks a set of measures aimed at restoring incomes and stimulating consumption, in a context of elevated bank loan defaults and loss of purchasing power in several sectors. The decisions span the financial market, wage negotiations, construction, utilities and fuel taxes.

Liquidity injection into the financial system

In the latest public debt auction, the Ministry of Economy rolled over 95.96% of maturities for $12.67 trillion. The operation injected more than $500 billion in cash into the system, a liquidity measure that helped moderate interest rates. The strategy aims to facilitate access to household credit and ease the impact of bank loan defaults, which approached 13% in July according to a 1816 report based on Central Bank data.

Wage negotiations with minimum floor

The Labor Secretariat, headed by Julio Cordero, is promoting that future wage negotiations incorporate a guaranteed minimum income above one million pesos. For August 2026, the official benchmark was $1,070,000, although the final amount will need to result from agreements between unions and companies and subsequently be approved. The proposal was directed especially to sectors such as maintenance services, construction and healthcare.

Credits to reactivate construction

To reactivate the sector, dollar-denominated loans to companies were made more flexible. Banks will be able to allocate up to 15% of their foreign currency deposits to companies that do not generate foreign exchange, and it will no longer be mandatory to present collateral. Additionally, $2 trillion from Anses' Sustainability Guarantee Fund is expected to be channeled to banks to expand mortgage financing, with an estimated reach of between 17,000 and 18,000 families.