{
  "id": 2174264,
  "title": "Impatient savers are hindering Milei’s lending push in Argentina",
  "url": "https://urgent.news/2026/08/20/impatient-savers-are-hindering-mileis-lending-push-in-argentina",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-20T16:09:05.000Z",
  "source": {
    "name": "Buenos Aires Times",
    "slug": "buenos-aires-times",
    "url": "https://www.batimes.com.ar/news/economy/impatient-savers-are-hindering-mileis-lending-push-in-argentina.phtml"
  },
  "original_language": "en",
  "account": "President Javier Milei has urged Argentines to reinvest their savings in banks, but convincing them to hold onto their money for more than a few months has been challenging. Private sector certificate deposits, which encompass both individuals and companies, are increasing by 45.1 percent compared to last year, while dollar deposits have reached a record high since 2001, outpacing annual inflation of 34 percent. While this is a notable achievement for a nation that traditionally prefers to stash their money under mattresses, the duration of these savings is shrinking. Currently, only about 4 percent of peso deposits are in maturities longer than 90 days, down from roughly 8 percent a year ago. This decline is posing a significant challenge for banks attempting to expand longer-term credit. Roughly 95 percent of bank funding matures within three months, leaving lenders with limited capacity to extend loans over longer periods. Juan Carlos Barboza, head of research at Banco Mariva SA, notes that there is limited interest in very long-term fixed deposits in Argentina, as there's not enough liquidity compared to bond investments. The discrepancy between short-term and long-term savings is emerging as a broader hurdle to Milei's economic recovery plans. The Central Bank is injecting more liquidity into Argentina's financial system to maintain low interest rates following a surge in borrowing costs last year, aimed at containing a peso devaluation at that time. However, despite the President's efforts, private sector peso lending to the economy has barely risen relative to GDP since his inauguration, hindering the availability of funding for investment and employment growth. This is particularly concerning as Argentina's economy remains uneven and unemployment remains high ahead of the 2027 election. Milei's shift towards shorter-term deposits also indicates that while confidence in the financial system has improved, Argentinian savers remain hesitant to lock their money away for extended periods. This reluctance is fueled by a history of inflation, devaluations, and policy changes in the country. Furthermore, recent months have seen renewed uncertainty over Milei's political strength, which has led depositors to remain cautious. Longer-term fixed deposits in pesos offered by major banks such as Grupo Financiero Galicia, Banco Macro SA, and Banco Santander SA, despite offering yields below inflation expectations, are likely to result in negative real returns for savers. With election uncertainty looming and a possible shift towards dollarization of savings, depositors are more inclined to keep their money short-term, fearing currency depreciation could erode the higher yields from longer-term deposits. Fernando Baer, chief economist at local consultancy Quantum Finanzas, warns that increased outflows and elevated interest rates could result from such sentiments, adversely affecting credit supply.",
  "summary": "Certificate deposits in pesos from the private sector – including individuals and companies – are growing. Yet the maturity of those savings is shrinking. Leer más",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Buenos Aires Times",
        "title": "Surging unemployment is Milei’s biggest political threat in Argentina",
        "url": "https://urgent.news/2026/08/19/surging-unemployment-is-mileis-biggest-political-threat-in-argentina",
        "published": "2026-08-19T12:56:31.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}