New mortgage loans: what banks and the construction sector said about Caputo's announcement

On Wednesday, Argentine Minister of Economy Luis Caputo announced a government plan to stimulate the mortgage market by allowing banks to access up to $2 trillion from the Sustainability Guarantee Fund (FGS) for long-term financing. The initiative aims to increase the availability of housing credit through these social security funds.

This policy launch occurs against a backdrop of economic strain for Argentine households. While the government seeks to foster new lending, there is concurrent pressure from existing borrowers struggling with debt delinquency, a situation largely attributed to declining household incomes.