Milei Privatizes Argentina’s Largest Bank
The sign reads, “Banco Nacion is not for sale.” X/ @Joseanperdomo
February 20, 2025 Hour: 2:17 pm
‘Banco Nacion’ ranks first among financial institutions in terms of equity, assets, loans, and deposits.
On Thursday, the Banking Association, the main banking workers’ union in Argentina, rejected President Javier Milei’s decree to transform the state-owned Argentine National Bank (Banco Nacion) into a joint-stock company.
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“We express our absolute rejection of the recent decree signed by President Milei, which seeks to transform the Argentine National Bank into a joint-stock company,” the union stated.
“We declare ourselves on alert and in a state of mobilization. Today, there will be a meeting of union organizations to determine the course of action to follow in defense of Banco Nacion and public banking,” it added.
Milei’s decree establishes that the shareholders of the new joint-stock company are the Argentine state, holding a 99.9% stake, and the Argentine National Bank Foundation, which owns the remaining 0.1% of the share capital.
The Argentine state will exercise its rights in the new company through the Economy Ministry. The share capital of the joint-stock company has been set at approximately US$1.5 billion at the current exchange rate.
In 2024, Milei had already included the Argentine National Bank in the list of companies he intended to privatize but had to remove it from that group due to strong opposition in Parliament.
His strategy then shifted toward converting Argentina’s largest bank into a joint-stock company, arguing that this was necessary for the bank to continue “increasing loans for small and medium-sized enterprises and families.”
“Milei does not have a government plan but a business plan. We will not allow them to destroy the national heritage belonging to all Argentines,” the Banking Association warned.
According to Central Bank figures, the Argentine National Bank ranks first among financial institutions operating in the South American country in terms of equity, assets, loans, and deposits.
As of early 2025, it had assets of approximately US$48 billion, deposits and other liabilities of US$33 billion, net equity of US$15 billion, and a loan portfolio of US$15 billion. It has also 17,403 employees, 721 local branches, and four branches abroad: New York, Madrid, Montevideo, and Santa Cruz de la Sierra.
teleSUR/ JF
Source: EFE
