Argentine banks are now allowed to issue US dollars loans to any company

In a move partially easing dollar lending rules, the Argentine government lifted a restriction on Thursday allowing banks to lend their dollars to any company, regardless of whether it generates foreign currency. Economy Minister Luis Caputo described the decision as a "partial easing" of the restriction, while the Central Bank called it a loosening of its "prudential framework" for foreign currency financing.

Under the old rules, banks could only lend dollars to companies that generated foreign currency or had a guarantee from one that did. The change means the benefit is now open to all companies. The measure will be made official via a decree shortly. Banks can now lend up to 15% of their foreign-currency deposits in aggregate. They must assess borrowers' repayment capacity under various exchange-rate scenarios.

The measure aims to ensure sustainable financial growth, safeguard solvency and liquidity, and limit risks tied to currency mismatches. The new rules come as part of the "fiscal innocence" bill in Congress, which aims to bring dollars held outside the banking system into the country.