The government of Javier Milei approved the privatization of Banco Nación de Argentina, a measure that is part of the new omnibus law. Daniel Tillard, the newly appointed president of the entity, confirmed this decision, underlining its importance for growth, efficiency and transparency of banking management.

This transformation responds to the need to reform the management of the bank, which in recent years has not fulfilled its social objective of converting deposits into loans for Argentine SMEs and families. In addition, deficiencies in credit practices and worrying default indicators are highlighted, with a decline in financing and liquidity levels.

Tillard noted that the country’s economic readjustment will be key to changing the banking landscape, emphasizing the need for Banco Nación to improve its lending to SMEs and families and optimize its operations. With Milei’s rise to power, there had been speculation about the possible privatization of this bank, as well as other state-owned companies such as YPF and Aerolíneas Argentinas. The first steps of the new government are aimed at reducing state spending.

However, the Banking Association, a union of bank workers in Argentina, has already warned that it will oppose the transformation of BancoNación and other public banks into public limited companies for sale or liquidation. The union emphasizes the importance of the social function of these institutions, a position that becomes more relevant after the official confirmation of this measure by the bank’s president.

K. Tovar

Source: Infobae

(Reference image source: Sasha • Stories, Unsplash)

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