A Candid Assessment at the Mendoza Stock Exchange
The President of the Central Bank of Argentina (BCRA, for its acronym in Spanish), Santiago Bausili, spoke before business leaders on Friday, August 14, 2026, at the Mendoza Stock Exchange. During the presentation titled "Transformation, Management Balance, and Strategic Goals," he provided a candid assessment of the country's economic recovery, admitting it is moving slower than the government had hoped. "The economy is growing slowly, around 2% annually, much slower than we would like," Bausili stated.
The event was attended by Mendoza's Governor, Alfredo Cornejo, and moderated by National Deputy Lisandro Nieri. Bausili reviewed the recent evolution of credit, monetary policy, and the outlook leading up to the 2027 elections.
"Fear" as the Main Enemy of Investment
One of the central themes of his speech was the role of economic expectations. Despite fiscal and monetary progress, the BCRA chief noted that a significant factor still conditions the decisions of companies and consumers: "fear, or what we call post-traumatic stress," stemming from the successive crises Argentina has endured.
According to Bausili, this perception leads economic agents to adopt defensive strategies, such as incurring additional costs to protect against a hypothetical crisis, rather than allocating resources to expand production. "If the fundamentals are solid, the risk of what those fears suggest is very low, so the insurance premium becomes expensive," he explained.
"There is still an element that dominates decision-making in Argentina, and that is fear."
Credit: Slow but Positive Recovery
Bausili highlighted that May, June, and July 2026 showed positive credit growth numbers, both in pesos and US dollars, following a slowdown in the second quarter of 2025 ahead of an electoral process. The dollar-denominated component shows the most dynamism, though the peso segment is also improving.
However, he acknowledged that banks "are not desperate to lend" and that current regulations still present restrictions. Currently, the national credit system represents 9.6% of GDP (Gross Domestic Product) in pesos and 12.5% in dollars—low levels compared to the rest of the region.
In this context, the official referred to a recent regulation allowing banks to lend up to 15% of their dollar deposits to non-exporting companies, provided they have an exporting guarantor. The measure aims to channel savings kept "under the mattress" into the financial system and productive projects.
The Need for Long-Term Financing
One of Bausili's deepest diagnoses pointed to the lack of institutions that channel long-term savings. "Banks take sight deposits or 30-day term deposits and lend them for 20 years. They cannot do that with a large part of their balance sheet," he warned.
Here, he mentioned the pension fund system as a natural tool to attract medium and long-term savings. The government is evaluating a scheme involving the Sustainability Guarantee Fund (FGS) of ANSES (Argentina's Social Security Administration) to auction long-term fixed-term deposits among banks.
Inflation: Resuming the Deceleration Path
The BCRA President addressed the July 2026 inflation data, which reached 2.1% monthly. He attributed part of this acceleration to "very specific elements" like seasonality and winter tourism but assured, "We are convinced that we will resume the path" of disinflation observed between April and June.
Bausili ratified that monetary policy maintains a contractive bias, with the central goal remaining the reduction of inflation.
Strategy Towards the 2027 Elections
When asked how they will face electoral uncertainty, Bausili explained they will counter it with greater deregulation. He recalled that speculative attacks "already cost a lot to most people in 2025," emphasizing that macroeconomic order, fiscal surplus, and falling inflation are the main tools to discourage defensive behaviors.
"It was like paying an insurance premium that made no sense. That is why, this time, many will not join this situation," he affirmed.
Support from Governor Cornejo
Governor Alfredo Cornejo backed the national government's economic direction and praised the cleanup of the BCRA's balance sheet, the reduction of remunerated liabilities, and the recovery of reserves. He also expressed support for the reform of the BCRA's Organic Charter, which aims to limit the Treasury's financing mechanisms, and stressed the need to strengthen credit access for SMEs (Small and Medium Enterprises) and productive projects.
| Indicator | Value |
|---|---|
| Annual Economic Growth | ~2% |
| July 2026 Inflation | 2.1% monthly |
| Credit/GDP in Pesos | 9.6% |
| Credit/GDP in Dollars | 12.5% |
| Loan Cap in Dollars for Non-Exporters | 15% of Deposits |