Overview
- The president met with his economic team to finalize a draft reform of the BCRA’s Carta Orgánica that would give the central bank a single mandate to preserve the currency and explicitly ban financing the Treasury by printing money.
- The draft that Milei outlined would add criminal penalties for officials who violate the ban, a change that would expose public officials and central‑bank actors to legal sanctions if they enable monetary financing.
- The government is also drafting a statutory 'shutdown' mechanism to automatically stop nonessential public spending when the budget is exhausted, but that proposal requires separate legislation to take effect.
- The Treasury formalized two loan contracts on July 8 totaling US$3.2 billion with Santander, BBVA and Deutsche Bank backed by guarantees from multilateral lenders; capital repayments start in late‑2029 while interest begins earlier.
- Banks are offering longer, often cheaper refinancing to households and public banks have launched consolidation lines to ease rising delinquencies, even as former central‑bank chiefs warn the reforms could shrink activity or politicize monetary policy.