Argentina Congress splits on household debt plans as opposition pushes emergency bill

Argentina's Chamber of Deputies committees on Finance and Consumer Defense issued three competing reports on household debt Tuesday. The ruling La Libertad Avanza coalition secured a majority report with 32 signatures backed by PRO and two UCR dissidents, emphasizing credit transparency and financial education rather than direct relief.

The opposition bloc led by Union por la Patria, Provincias Unidas and the Civic Coalition produced a minority report with 27 signatures declaring a debt emergency. Their proposal includes interest-rate caps, refinancing plans and full forgiveness of punitive interest for the nearly 6 million borrowers in arrears.

“The over-indebtedness is the result of a lack of information on access to credit”

A third report from the Argentina Federal bloc added two more signatures. Both opposition texts cite 20 million indebted Argentines, mostly owing banks and digital wallets, with almost 6 million more than three months behind on payments.

President Javier Milei has called the crisis a matter "between private parties" and opposes state intervention. Forced by an opposition deadline, the government drafted its first proposal on the issue, requiring lenders to disclose real credit costs, provide full debt breakdowns and add double validation for online loans.

Opposition leaders aim to convene a special session on October 7, though October 14 is also under consideration. The government prefers to delay any vote until after the budget debate. The majority report will be voted on first; if rejected, the minority texts follow in order.