Overview
- Santa Fe’s government announced a decree that halves the allowable paycheck deduction on payroll-linked loans to 25% and launches a refinancing push for public workers and retirees.
- Lenders that use the payroll-deduction system must re‑register and offer refinancing that fits under the new cap to keep operating, with those that refuse losing access to the mechanism.
- The province will deploy tools that include Banco de Santa Fe refinancing for up to 60 months, zero‑interest state loans to cover the amount above the cap, and a ban on new borrowing for users of that stopgap aid.
- Officials estimate 12,000 public employees and 7,000 retirees now face deductions above 25%, and about 50,000 private‑sector workers are heavily indebted through paycheck discounts run by roughly 30 entities that in some cases charge total annual costs near 120%.
- The measures take effect by decree with rules targeted to be available in May, the government pegs a worst‑case six‑month outlay at about $8 billion to be recovered, and the program also extends to private workers through bank agreements and employer engagement.