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    3. Deadline Approaches for Banks to Join CABA's Debt Refinancing Plan

    Deadline Approaches for Banks to Join CABA's Debt Refinancing Plan

    By: rootdata|2026/08/14 20:37:00
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    This Friday, the 14th, is the deadline for financial institutions to join the Family and Personal Debt Relief Program of Buenos Aires City, an initiative aimed at alleviating the situation of households in the city with overdue debts through more favorable refinancing conditions.

    So far, Banco Ciudad, Santander, ICBC, and Supervielle have confirmed their participation in the program, which was created under Law No. 6,959, enacted by the Buenos Aires Legislature last June.

    The initiative will allow for the refinancing of debts arising from personal loans and credit cards under a special scheme: the new loans must have a minimum repayment period of 24 months and a fixed interest rate that cannot exceed 35% Annual Nominal Rate (TNA).

    The program arises in a context of significant deterioration in the payment capacity of families. Delinquency in consumer loans shows sustained growth and has become one of the main concerns of the financial system, particularly among those who resorted to personal loans and credit cards to supplement income or cover current expenses.

    The benefit will be directed at residents of the City who demonstrate a situation of financial vulnerability and meet a series of requirements established by law.

    In particular, those with debts arising exclusively from credit cards and/or personal loans granted by financial institutions and who are in situation 2 or 3 in the Central Debtors Registry of the Central Bank (BCRA), that is, with delays of between 60 and 180 days, will be able to access it.

    Additionally, the family group's income must be less than ten minimum wages, while the monthly commitments related to the debts in question must represent more than 30% of the household's monthly income.

    Another requirement will be to prove real residence in CABA for at least the last two years. The regulation aims to concentrate assistance on households with concrete difficulties in normalizing their financial situation.

    The head of government, Jorge Macri, defined the initiative as a relief mechanism for indebted middle sectors. "Porteno families will be able to refinance their overdue credit card debts and loans with more time and a fixed interest rate. It is a relief for the working middle class that strives to get back on track," he stated.

    The law also establishes a series of exclusions to prevent the benefit from reaching individuals with sufficient wealth capacity to meet their obligations. Those who own more than one property, have vehicles less than five years old ---except those used for duly accredited work activities---, or are owners of boats, aircraft, or luxury goods subject to registration will not be able to access it.

    Nor will those who possess financial assets exceeding the total amount of the claimed debt or those who have purchased foreign currency during the period in which the obligations they seek to refinance were generated be able to enter the program.

    One of the central points of the scheme is the tax incentive provided for participating entities, as joining the program includes a 50% reduction in the Gross Income Tax applicable to the interest earned from refinancings carried out under this regime.

    The inclusion of Santander, ICBC, and Supervielle, along with Banco Ciudad, expands the initial scope of the program, which was initially intended to be implemented mainly through the public bank of the city. However, the regulation was designed from the outset with the possibility of adding private entities through the tax benefit.

    -- Price

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