5 minEconomy
Nearly 4 in 10 young Argentine borrowers are behind on debts as Milei-era economy strains youth
Argentina's young borrowers face the highest delinquency rate of any age group, testing support for President Javier Milei ahead of the 2027 election as opposition lawmakers push for debt relief measures.
Nearly 4 in 10 Argentine borrowers under 25 are behind on their debts, a delinquency rate higher than any other age group in the country, as the generation that helped elect President Javier Milei struggles with unemployment and rising costs. The trend is testing political support for Milei's free-market agenda and giving the opposition an opening ahead of next year's presidential election.
More than 5 million Argentines are behind on payments out of roughly 20 million total borrowers, according to the Center for City Studies, a nonprofit that tracks debt using central bank data. Borrowers under 25 lead all age groups with a delinquency rate of 37.6%. Martín Taborda, an 18-year-old law student at the University of Buenos Aires, borrowed just over $100 through a mobile payment app in 2024 for education expenses. Unemployed and now $1,300 in debt, he can no longer afford bus fare or books to continue his studies at the tuition-free university.
Taborda said there is hardly any work available for young people and described the emotional burden of relying on others. He joined a few dozen other students at an anonymous debtors' meeting held at the university's economics school, where a moderator asked who had bought groceries in installments, borrowed through payment apps, or taken on debt to repay old loans. Most hands went up.
Opposition lawmakers have called a special session of Congress to consider interest-rate caps and other measures to help Argentines renegotiate their debts. Labor unions and debtors planned to protest outside the building during the debate. Left-wing lawmaker Nicolás del Caño and fellow sponsors described the proposal as an emergency measure to address the crisis, noting that households took on debt to survive and now cannot repay it.
Milei has rejected calls for government relief, arguing that unpaid debts are a private matter between borrowers and lenders rather than a symptom of wider economic distress. Economy Minister Luis Caputo promised at a recent press conference that banks were easing repayment terms, though he added that empathy should not be confused with public policy.
Since taking office in late 2023, Milei has slashed the budget deficit and brought annual inflation down from a peak of 289% in early 2024 to about 34% in July. Greater macroeconomic stability has encouraged banks to lend more, while steep cuts to subsidies for gas, electricity, and transport have pushed bills up faster than incomes, forcing many Argentines to borrow just to get by. Slower inflation means smaller pay raises, while borrowing costs remain high under the government's tight monetary policy. Digital payment apps require less paperwork than banks but often charge much higher interest, with annual rates reaching triple digits.
Vanesa Bittoco, a spokesperson for Organized Debtors, an advocacy group that campaigns for repayment plans tied to workers' incomes, said people used to take out loans to buy houses or cars but now borrow to buy food to make it to the end of the month. More than 80% of adults surveyed in Buenos Aires and its suburbs in April said economic problems had a major impact on their psychological well-being, according to the university's Applied Social Psychology Observatory.
Public opinion consultant Ana Iparraguirre, a partner at Washington-based strategy firm GBAO, said the economic model is hitting young people much harder than other Argentines. She warned that if this continues, Milei is putting his reelection at risk with the same electorate that helped him win. Milei has blamed the surge in delinquencies on irresponsible spending, telling investors in Rosario last month that people bought televisions to watch the World Cup and figured they would decide later whether to pay.
A recent online poll of 1,500 people by Argentine pollster Zuban Córdoba put approval of Milei's administration at 33%, down from 49% in December 2025, with most respondents saying they are worse off financially than when Milei took office. The survey, conducted from July 22 to 26, reported a margin of sampling error of plus or minus 2.5 percentage points. Bittoco said the government will have to provide a solution, otherwise they are heading toward a dead end.
