In Buenos Aires, a new wave of household debt is putting President Javier Milei’s popularity to the test among the young voters who propelled him to power in late 2023. Martín Taborda, a 20‑year‑old law student at the University of Buenos Aires, is emblematic of the crisis. Unemployed and $1,300 in arrears, he can no longer afford bus fare or textbooks, despite attending a tuition‑free university.
According to the Center for City Studies, an Argentine nonprofit that monitors debt using central‑bank data, nearly half of the nation’s 45 million people owe money, and more than 5 million are behind on payments. Borrowers under 25 have the highest delinquency rate of any age group, at 37.6 %.
Debt‑relief proposals surface amid protests
On Wednesday, debtors and labor unions gathered outside Congress, urging lawmakers to act. Legislators agreed to consider 50 proposals aimed at easing household debt, including interest‑rate caps and refinancing plans. Even Milei’s libertarian party voted to debate debt‑relief measures, though it stopped short of endorsing any specific plan.
Opposition lawmaker Pablo Juliano warned that many families are “falling into a spiral of borrowing to repay other loans,” and that they cannot find a dignified way to restructure their debts or protect themselves from aggressive collection practices.
President Milei has rejected calls for direct government intervention, arguing that unpaid debts are a private matter between borrowers and lenders. Economy Minister Luis Caputo echoed that sentiment, saying the administration should not “confuse empathy with public policy,” while noting that banks are already easing repayment terms.
Economic backdrop and its impact on borrowers
Since taking office, Milei has reduced the budget deficit and lowered annual inflation from a 2024 peak of 289 % to about 34 % in July. The macro‑economic stability has encouraged banks to lend more, but steep cuts to subsidies for gas, electricity and transport have pushed household bills up faster than wages.
With inflation now lower, wage increases have slowed, leaving many borrowers to shoulder high interest rates that remain in the triple‑digit range, especially on digital‑payment apps that charge higher rates due to perceived risk.
Vanesa Bittoco, spokesperson for the advocacy group Organized Debtors, noted a shift from traditional loans for homes or cars to borrowing for basic necessities like food.
Polls show slipping approval
A recent online poll of 1,500 respondents conducted by Argentine pollster Zuban Córdoba from July 22‑26 shows Milei’s approval rating at 33 %, down from 49 % in December 2025. The margin of sampling error is ±2.5 percentage points. Most respondents said they feel financially worse off than when Milei assumed office.
Public‑opinion consultant Ana Iparraguirre warned that the growing debt burden could erode Milei’s support among the young electorate as he seeks a second term in the 2027 presidential election, just 14 months away.
“If this continues, Milei is putting his reelection at risk with the same electorate that helped him win,” Iparraguirre said.
President Milei has offered little sympathy, attributing the surge in delinquencies to “irresponsible spending,” citing examples such as purchases of televisions for the World Cup that were not paid for.
The debt squeeze adds another challenge to Milei’s agenda as he balances fiscal restraint with the need to maintain popular support.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
