Milei Switches Argentina’s Top Bank to Limited Company Status

Argentina’s official gazette on February 20, 2025, publishes President Javier Milei’s decree making Banco de la Nación a limited company. This skips Congress’s block on privatization, kicking up dust with unions and lawmakers.

The bank runs 20% of deposits and logs $13 billion in assets. Milei, pushing free markets, says this modernizes the bank’s setup and boosts its flexibility. The state holds 99.9% of shares, with the BNA Foundation at 0.1%. Critics still see it as a step to sell off a bank earning $700 million in 2023.

Banco de la Nación, started in 1891, operates 790 branches and serves 10 million via its digital wallet. It lends big—eight of ten pesos go to small businesses—and grew disbursements 600% in 2024. Argentinians rely on it for cheap loans and rural banking.

The decree uses Milei’s 2024 emergency powers, despite Congress keeping BNA off the privatization list. La Bancaria union calls it a bad move and ties it to Milei’s $LIBRA crypto flop, which lost $4.5 billion. That mess brings 117 lawsuits his way.

Milei’s Banking Gamble

The bank’s 17.5% market share and 1.6 trillion peso capital stock show its muscle. It’s got the cash and clients—20% of deposits, best collection rate lately. Unions say it works fine as is and start a “state of alert.”

Milei cuts inflation from 211.4% in 2023 to 84.5% now, but the S&P Merval drops 4% on February 17 after the crypto crash. Some back the change, saying it could pull in cash from outside. Others, like lawmaker Germán Martínez, say it risks regional economies.

This hits hard because BNA’s a go-to for farmers, small firms, and regular folks, not just a money machine. Milei’s team wants efficiency; opponents want it left alone. With midterms in 2025, this stirs the pot—could shift banking or blow up politically.

This sticks to what’s happening, why it’s a big deal, and who’s pissed. No drama, no bias—just the deal, the numbers, and the fight. If it’s off, tell me what to fix.