Confiscatory Rates: Which Municipalities Are in Banco Nación's Sights

Banco Nación confirmed the closure of its branch in Ramos Mejía, La Matanza, and its relocation to Ciudadela, in  Tres de Febrero, as part of its strategy to reduce operational costs due to the high tax burden in some municipalities.

The entity, led by Daniel Tillard, seeks to optimize its structure and  doesn't rule out future closures in districts with high municipal rates.

The impact of fiscal pressure on public banking

Banco Nación commissioned a report from IERAL of the Fundación Mediterránea to evaluate the impact of local taxes on the bank's profitability. According to the analysis, some localities apply rates that represent a significant burden on the banking spread, affecting the viability of the branches.

The municipalities with the highest tax pressure include:

• San José de Feliciano  (Entre Ríos): rate of 8.2%, with an effective rate of 71% on spread.
• Villa Constitución (Santa Fe): rate of 7.55%, with an effective rate of 65.5%.
• La Matanza (Buenos Aires): rate of 7.5%, with an effective rate of 65%.
• San Justo  (La Matanza, Buenos Aires): rates similar to the previous ones.
• Casilda  (Santa Fe): rate of 7.3%, with an effective rate of 62%.
• Posadas  (Misiones): rate of 6.8%, with an effective rate of 60%.
• Marcos Paz (Buenos Aires): rate of 6.3%, with an effective rate of 55%.

Future decisions of Banco Nación

The entity indicated that the municipalities with the highest rates are being evaluated and could face branch closures if they do not reduce fiscal pressure. In the province of Buenos Aires, the most costly districts for banks include La Matanza, Marcos Paz, La Plata, Campana, San Nicolás, Quilmes, Moreno, Vicente López, and Luján.

In Córdoba, the bank has initiated political negotiations to agree on tax reductions and avoid the closure of offices in localities like Río Segundo and San Francisco, which apply rates of 7.3%.

The National Government maintains that these measures aim to prevent the tax burden from making loans more expensive for citizens and companies.  "We will not endorse the abusive collection of rates that affect the competitiveness of the financial sector and limit access to credit", official sources expressed.