Banks will be able to provide dollar financing to any company, but a gradual rollout is expected

The government expanded access to dollar-denominated bank financing for companies that do not generate export revenue. Based on the current level of private foreign-currency deposits, the measure could enable loans of up to USD 6 billion, although banks and officials anticipate a gradual rollout without an immediate jump in disbursements.

The reform aims to boost activity in an uneven landscape, with greater momentum in sectors such as agriculture, mining and energy, while industry, construction and commerce show more modest performance. It also seeks to channel part of the dollar liquidity that remains in the financial system toward productive credit.

Companies that access these loans will be required to settle the funds in the official market. That condition could temporarily increase the supply of foreign currency in the Mercado Libre de Cambios (Free Exchange Market) and support the Central Bank of Argentina's (BCRA) strategy to maintain exchange-rate stability and build up reserves.

Official figures show that dollar deposits stand at around USD 40.5 billion, compared with an outstanding loan stock of approximately USD 24.7 billion. The ratio between the two variables has grown sharply since late 2023, when deposits totaled USD 14.243 billion and foreign-currency lending barely exceeded USD 3.747 billion.

The new framework does away with the restriction that concentrated dollar financing among exporting companies or firms with direct income in that currency. Now all legal entities will be able to apply, although lenders will need to assess the risk of each transaction to avoid an increase in delinquency rates.

Private estimates place the reform's potential impact at between USD 6 billion and USD 6.5 billion, depending on the methodology used. However, analysts agree that the initial effect on economic activity will be limited, given banks' caution and the lack of incentives to offer longer-term loans. Ultimately, the outcome will depend on actual demand from companies.

With information from Infobae — Economía.