Caputo to Unveil Economic Measures as Argentina Faces Arrears Crisis

Argentina's Economy Minister Luis Caputo plans to unveil a series of economic measures on Wednesday 26 August 2026 at the Palacio de Hacienda in Buenos Aires. The measures come amidst a record high of household arrears and a heavy debt auction.

The centerpiece of Caputo's agenda is a new financing scheme to reinvigorate the mortgage-credit market. This plan will use the Fondo de Garantía de Sustentabilidad (FGS), a sovereign fund that supports the public pension system. By employing the FGS as a leverage tool, the scheme aims to extend funding terms and lower origination costs for housing loans.

Caputo's economic measures will also be accompanied by two crucial bills. The first is a reform of the Central Bank's charter, a project led by vice-minister José Luis Daza. This reform would grant the Central Bank technical independence and forbid direct financing of the Treasury, provinces, and municipalities. The second bill, known as Fiscal Innocence II (Inocencia Fiscal II), seeks to provide legal certainty to Argentine citizens who bring certain assets held outside the formal financial system into the open.

In addition to the economic measures, the government will seek first-round approval in the Chamber of Deputies for these two priority bills. President Javier Milei has been meeting with deputies and senators to secure their votes. The government's third front involves financial matters, with the Treasury facing debt maturities totaling 12.6 trillion pesos in its upcoming auction. Unlike earlier auctions, this one will not include US-dollar bonds, reflecting a shift in strategy.

Despite domestic concerns, foreign investors remain interested in Argentina. A recent Bank of America survey of 30 Latin American fund managers managing around $90 billion in assets suggests 33% expect further improvement in Argentine assets within six months. The country stands out as a relative exception in a region where risk appetite has fallen to its lowest since April 2025.

The government is also making progress in infrastructure, having recently awarded eight highway concessions covering over 3,900 kilometers under 20-year toll contracts.