Buenos Aires Legislature proposes debt refinancing for Banco Provincia

Senator Marcelo Leguizamón has introduced a bill in the Buenos Aires Legislature to establish an extraordinary regime for the regularization, recovery of credit, and refinancing of debts with the Banco de la Provincia de Buenos Aires.

The initiative targets individuals with unpaid obligations of 90 days or more, covering personal loans, consumer debt, credit card balances, and overdrafts. To qualify, a family's net income must not exceed 10 Minimum Living and Mobile Wages (SMVM). The proposal stipulates that monthly installments cannot exceed 30% of the household's net income.

Key features of the plan include refinancing terms of up to 60 months, a potential 12-month grace period for capital payments, and the total or partial forgiveness of punitive interest and administrative costs. While the bill freezes punitive interest and suspends judicial collection actions during compliance, it clarifies that it is not a general debt forgiveness or a use of public funds to pay private debts, as the principal amount remains due.