Argentina Central Bank Pressures Banks to Absorb Delinquent Loan Losses

BCRA head Werning is demanding banks absorb losses on delinquent family debts and refinance at lower rates and longer terms, without state assistance. This shifts credit risk onto the banking sector, potentially squeezing bank profitability and credit availability. The move signals a policy push to protect households amid economic strain, but its impact on financial stability is uncertain.