Latin American debt relief and restructuring initiatives

Various Latin American nations are implementing or requesting different forms of debt relief and financial restructuring measures.

In Argentina, the Río Negro provincial government proposed a plan to address high debt among public employees by reinstating a cap on salary retentions to ensure employees do not receive zero net salaries. This involves negotiating with unions and financial entities. Simultaneously, Ecuadorian farmers requested extraordinary credit measures from President Daniel Noboa, seeking to defer capital and interest payments for up to 180 days following significant crop losses.

In the Dominican Republic, the Comité Institucional Codiano (CIC) has issued formal communications to ten public institutions, including the Ministry of Public Works and Communications (MOPC), the Ministry of Housing and Buildings (MIVED), and the Ministry of Education (MINERD), demanding information regarding unpaid state debts to contractors. Under Law No. 16-26, the CIC is seeking to resolve 92 pending files, some of which have remained unresolved for over six years; current documentation delays are blocking the verification and validation process required for payment.

In Chile, following the publication of the National Reconstruction and Economic and Social Development Law (No. 21.850), the General Treasury of the Republic (TGR) has introduced specific financial relief tools. For micro, small, and medium enterprises (MSMEs/Mipymes) and individuals with overdue tax debts, a 180-day window is available. Cash payments allow for a 100% waiver of interest and 80% of fines, while installment plans offer a 95% interest waiver and 75% fine waiver over up to 48 months. Additionally, over 74,000 student debt (CAE) holders can regularize their situation within a 90-day period by reprogramming overdue installments without moratory interest or collection costs.