Banco Nación Closes Branch in La Matanza Due to High Municipal Rates

The Banco Nación announced the closure of its branch in Ramos Mejía, La Matanza district, due to the high tax burden imposed by the municipality.

The financial institution will move its operations to Ciudadela, in Tres de Febrero, where municipal rates are significantly lower.

Reasons for the closure

The main reason for the decision is the high cost represented by municipal taxes in La Matanza, which affect the bank's profitability and make loans more expensive. According to Banco Nación, the municipality charged it more than 5 billion pesos in municipal rates during 2024, a figure equivalent to the payroll of employees in its branches in the area.

Meanwhile, in La Matanza the municipal rate is 7.5%, in Tres de Febrero it is considerably lower. In this context, the president of Banco Nación, Daniel Tillard, stated that "the tax in Tres de Febrero has a rational design that doesn't penalize our presence or make loans more expensive."

Impact on customers

The move will be effective from April 30. Customers of the Ramos Mejía branch, located at Avenida Rivadavia 13748, will operate at the Ciudadela branch, at Padre Elizalde 445, just 2.1 kilometers away.

According to the mayor of Tres de Febrero, Diego Valenzuela, "this measure is an incentive for other municipalities to adopt a more competitive tax policy".

Political and economic context

The decision of Banco Nación responds to a directive from President Javier Milei, who instructed to close branches in municipalities with high tax burdens. Last October, the Minister of Economy, Luis Caputo, had warned that measures would be taken against municipalities that  "abuse their residents through unjustified municipal rate increases."

The measure by Banco Nación is also part of a broader strategy, which included legal actions against municipalities with high taxes. In the Cordoban town of Jesús María, for example, the bank achieved a reduction in rates following a court order.

Reactions and consequences

The mayor of La Matanza, Fernando Espinoza, had defended the application of municipal rates on financial services, while his counterpart in Tres de Febrero emphasized that "tax competition should guide the economic decisions of municipalities".

The situation could be replicated in other localities, as the Government has made it clear that it will not allow the abusive collection of rates that affect the profitability of companies and financial institutions.