ARGENTINA: An Introduction to Banking & Finance

Argentina is one of the largest economies in Latin America, with a GDP of approximately USD633 billion in 2024, which is projected to reach USD665–666 billion by the end of 2025. The country has a population of over 46 million people and boasts abundant natural resources, including fertile land, gas, gold, silver, copper and lithium reserves, and significant potential for renewable energy production.

Despite historical macroeconomic challenges such as high inflation and currency depreciation, recent reforms under the Milei administration have led to a notable decline in inflation (down to 39.4% YoY as of June 2025) and increased investor confidence. Argentina’s banking and finance, infrastructure, energy and mining sectors remain resilient and are now entering a phase of renewed dynamism.

The New Administration

On 18 November 2023, Javier Milei won Argentina’s election run-off and was elected as Argentina’s president for the 2023–2027 period, which commenced on 10 December 2023. During his campaign, Milei proposed fast and radical measures to address economic imbalances, including strong cuts to federal spending, privatisations, deregulation, tight monetary policy and a significant reduction in money printing.

Upon assuming office, he faced severe economic challenges such as reducing inflation (211% in December 2023), curbing the fiscal deficit, eliminating regulatory hurdles, rebuilding net foreign exchange reserves, restoring economic growth and addressing poverty (which peaked at over 57% in 2024 and declined to around 38% in 2025).

By mid-2025, inflation had dropped significantly to 39.4% YoY, with a projected year-end range between 25.9% and 28.6%. Economic growth for 2025 is forecast to be between 4.5% and 5.2%.

The Large Investments Regime (RIGI)

To attract investment, the Milei administration launched the Foundations Law (“Ley de Bases”) which introduced the Large Investments Regime (RIGI). This regime provides a stable, incentive-based framework for major strategic investments, particularly in the infrastructure, energy, oil and gas, and mining sectors.

As of July 2025, six large-scale projects have been approved under RIGI, totalling USD12.8 billion. RIGI is designed to minimise sovereign, regulatory and foreign exchange risks by offering a 30-year legal and fiscal stability framework.

Benefits under RIGI include:

• exemptions from import duties and certain national taxes;
• preferential foreign exchange treatment for exports;
• international arbitration options (PCA, ICC, ICSID); and
• protections under bilateral investment treaties.

Projects of USD200 million or more qualify, while those over USD1 billion receive enhanced benefits.

Other Relevant Reforms

Complementing RIGI, the government revised the public works and infrastructure concessions framework, promoting private capital and decentralising public contracting and promoting privatisations. Substantial protections for lenders and sponsors have also been enacted.

Additionally, new regulations under the Foundations Law target oil and gas liberalisation and export enhancement.

Industries to Watch in Argentina

LNG

The LNG sector presents significant opportunities for Argentina to leverage unconventional natural gas from Vaca Muerta. Recent infrastructure developments are positioning the country to generate a surplus that can be exported, making Argentina a future LNG player in global markets.

Mining

Lithium

Argentina is now the fourth-largest global lithium producer, with output reaching approximately 18,000 tons in 2024, up from 9,600 tons in 2023. It has one of the world’s largest lithium reserves – key for the global energy transition.

Favourable mining policies and low royalty rates have made the country an attractive destination for foreign capital. Lithium projects are mostly funded through offshore sources due to tight FX controls. Financing structures have involved export credit agencies and multilateral institutions.

Copper, gold and other minerals

Argentina’s metals sector holds vast potential, particularly in copper, gold and silver. The Mining Law provides a 30-year fiscal stability regime, plus tax benefits at all project stages.

Most investments are financed through foreign equity or offshore vehicles due to exchange rate regulations. Remote projects face connectivity and energy supply challenges, making power transmission improvements essential.

Energy

Renewables

Argentina currently sources about 13% of its electricity from renewables, short of the 20% target set for 2025. This leaves a gap of over 7,600 MW in additional capacity to meet legal requirements.

The RenovAr auction programme and corporate PPA market continue to drive renewables growth. These projects have been largely funded by local equity and debt markets or backed by export credit agencies.

The National Energy Transition Plan targets 7.5 GW in new renewables by 2030 and between 34 and 45 GW by 2050.

Transmission

Generation capacity has expanded, but transmission infrastructure lags. Bottlenecks prevent new projects from connecting to the grid, particularly in mining-intensive regions.

The 2030 Transition Plan includes over 5,000 km of new high-voltage lines and multiple substation upgrades. An estimated USD5.6 billion in investment is needed to execute this plan.

The energy transition

Argentina aims to become a leader in the energy transition through the development of green hydrogen, sustainable mobility and electrolysis capacity.

The government has outlined strategic plans to 2030 and 2050, requiring strong public-private partnerships and foreign capital to scale infrastructure.