Argentina will allow more flexibility for banks to lend dollars to companies, Economy Minister Luis Caputo told reporters on Thursday.
He said that the measure is intended to increase the amount of credit available to businesses, and that banks will only be able to lend up to 15% of their dollar deposits.
"We think this is a measure that will benefit everyone," said Caputo, adding that it would help to "reactivate the economy."
Caputo added that the auto and construction industries, among others, had been asking for more flexible lending. He said that high interest rates in pesos have been hard on business owners.
According to the government, the measure complements tax reforms aimed at encouraging Argentines to bring undeclared savings held in cash or overseas accounts into the formal financial system.
Argentina's central bank said on Thursday it would relax regulations governing foreign-currency lending following changes approved by the government. Authorities hope that bringing those funds into banks will boost the availability of dollar-denominated credit for companies, helping spur investment and job creation, Caputo said.
