Four governors have activated debt refinancing plans for public employees due to the high level of delinquency.

Governors such as Rogelio Frigerio, Maximiliano Pullaro, Juan Pablo Valdés, and Hugo Passalacqua are promoting debt refinancing plans for public employees and retirees. (Illustrative Image Infobae) The level of household debt is at historic highs. According to recent official reports, the proportion of loans in irregular status for individuals rose from 2.94% in February 2025 to 11.2%. To address this situation, some governors have launched various refinancing plans to alleviate the burden on public employees and retirees. These include Rogelio Frigerio (Entre Ríos), Maximiliano Pullaro (Santa Fe), Juan Pablo Valdés (Corrientes), and Hugo Passalacqua (Misiones). Juan Llaryora (Córdoba) has a similar scheme in mind, but it has not yet been implemented. In the province, public employee debt is primarily with the local "Cordobesa" credit card, issued by the Banco de Córdoba, which is controlled by the state. The governor must navigate a narrow path: refinancing public employee debt without affecting the financial stability of the bank. Entre Ríos launched its proposal last Monday. The provincial Minister of Economy, Fabián Boleas, stated that the goal is to replace high-cost debts with a single loan with more favorable conditions. The new scheme will significantly reduce the monthly burden, according to the official. "This initiative, carried out with the financial agent (Banco Entre Ríos), will, in some cases, reduce the interest rate by half," Boleas explained. He then announced that the system is expected to be extended to private sector workers. The program offers a fixed nominal annual interest rate (TNA) of 60%. The terms are up to 60 months, with a 60-day grace period. Boleas clarified that there is no fiscal cost to the state. The official emphasized that the proposal is based on "our assessment of the financial market," noting a "decrease in interest rates." Household debt in Argentina reached 11.2%, its highest level in two decades, according to official data. (Illustrative Image Infobae) The governor of Misiones, Hugo Passalacqua, announced that the province will extend the debt restructuring plan for public employees until the end of May. The program was launched on March 19. "Together with Banco Macro (the state's financial agent), we are extending the debt refinancing program for credit cards and/or personal loans until May 31," the governor said through his social media channels. The scheme includes a subsidized interest rate and covers provincial and municipal public employees, as well as provincial retirees and pensioners. The condition is that they have debt that is more than 31 days overdue as of April 30. The Misiones system does not require contributions from the state and offers a 7-point interest reduction. Meanwhile, Governor Juan Pablo Valdés leveraged the fact that the provincial government controls the Banco de Corrientes to implement a more ambitious system. The scheme covers public and private employees, allowing them to refinance credit card debt starting at $100,000, in 6 or 12 fixed installments, with a special rate with a 29-point reduction. This measure represents a financial relief of $90 billion, benefiting 89,000 residents of Corrientes province. The system refinances 80% of outstanding balances, with up to 12 fixed installments. A special rate with a 15-point reduction is used. The initiative is expected to generate a financial relief valued at more than $40 billion, benefiting more than 1,400 companies in Corrientes. The launch of "Corrientes Sostiene" involved a public investment of $130 billion. Similar to Corrientes, the government of Maximiliano Pullaro implemented a system to refinance the commitments of public and private employees. A new feature is the inclusion of self-employed individuals. The goal is to alleviate the financial burden and, in the case of public employees, ensure that deductions do not exceed 25% of income. The provincial government reported that 33% of public employees have deductions for loans in their paychecks. Of that total, approximately 12,000 exceed the 25% salary deduction threshold. This includes 7,000 retirees and nearly 60,000 private and self-employed workers in a similar situation. If the institutions do not accept these conditions, a second option is available. In this case, the provincial government can intervene with zero-interest financial assistance to cover the difference. Additionally, a credit line has been opened for debt consolidation, which will allow the unification of financial commitments with a term of up to 60 months, including a two-month grace period.