Claudio Cesario, president of the Association of Banks of Argentina (ABA) -which brings together foreign capital entities in the country- announced this Wednesday that In the coming days, the entity could present an appeal to the Supreme Court to support Banco Nación in the case over the UVA mortgage loans.
“There is an issue that worries us a lot, which is a trial in Misiones, where Mr. Azzimonti against the Banco de la Nación Argentina obtained two rulings, in the first and second instance, and today he is in the Supreme Court of Justice of the Nation. “, He pointed out within the framework of the annual entertainment for the press, where he took stock of the activity in 2024.
He argued that “probably in the coming days we will be presenting ourselves as amicus curiae in the Supreme Court, to reinforce the position of the Banco de la Nación Argentina.” “If the Court ratifies this situation, it is most likely that mortgage credit will disappear in Misiones and it will make it very difficult to grant mortgage credit throughout the country,” he warned.
The return of mortgage credit
“This year we were able to work again with banks to provide financing in pesos after the elimination of numerous restrictions and unsustainable limits for financial intermediation and because inflation is falling, which was our main complaint,” said.
“There is nothing we have fought for more than being able to work as a bank,” he remarked.
“The demand reappeared and surely the most notable thing was that we managed to revive mortgage loans, after we managed to resist almost alone so that the contracts were not modified,” he added.
Cesario highlighted that “With confidence, something was reborn that we thought we would not see for a long time in Argentina, which is mortgage credit. “With lower inflation, mortgage credit resurfaced, let’s not sleep because although credit returned, we always have risk,” he stated.
The problem of banknote storage in banks
Although the adoption of payment methods continues to grow and, furthermore, normative progress was recorded this year, Cesario stressed that a solution to the amount of banknotes stored in banks still remains to be found: “The volume of bills issued is so crazy that to illustrate the problem, if we line them up and put them side by side, we can circle the Earth 43 times or we could build four towers to the Moon.”
“We believe that in a crisis situation “Procedures must be further simplified to accelerate the destruction and subsequent demonetization of banknotes and optimize resources.”remarked the president of ABA.
The financial sector in 2025
Looking ahead to 2025, the president of ABA projected that “The trend is going to consolidate, something fundamental for the growth of the economy and beneficial for families and companies.”. In addition, banks will continue investing in technology, cybersecurity and promoting electronic payment methods.
Lastly, he indicated that “Next year there will be bank bond issues”. He argued that “To be able to download, this requires two conditions, first important institutions such as insurance companies, and that the credits that are originated and downloaded have a rate such that it is the discount rate that when I receive what I download, I allow us to continue lending”.
Source: Ambito
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