Milei Election Battle Leaves Banks at 5-Year Low: Shock Therapy

Banks in Argentina saw their worst results since the pandemic amid President Javier Milei’s fierce push to tame the currency before midterm elections.

Private banks posted losses during the third quarter as the nation’s loan delinquency rate surged to its worst level in at least 15 years, a result of high interest rates that Milei’s central bank imposed in the run up to the Oct. 26 vote. The squeeze has forced bankers’ hands, triggering a sharp pullback in lending that could continue well into 2026, just as Milei needs credit to play a major role in boosting economic growth ...