Banks in Argentina saw their worst results since the pandemic amid President Javier Milei’s fierce push to tame the currency before midterm elections.
Private banks posted losses during the third quarter as the nation’s loan delinquency rate surged to its worst level in at least 15 years, a result of high interest rates that Milei’s Central Bank imposed in the run up to the October 26 vote. The squeeze has forced bankers’ hands, triggering a sharp pullback in lending that could continue well into 2026, just as Milei needs credit to play a major role in boosting economic growth in the coming years.
Among the institutions that retreated is Naranja X, the consumer-finance arm of Grupo Financiero Galicia, Argentina’s largest privately-held bank. “We started to limit new loan origination to protect the balance sheet,” said Naranja X Chief Financial Officer Hernán García.
Behind his decision was the weakest q
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