Javier Milei's Government Transformed Banco Nación Into a Corporation

This Thursday, the Official Gazette was published where, through a decree by President Javier Milei, the conversion of the Banco de la Nación Argentina into a Sociedad Anónima was formalized, in compliance with the provisions of DNU 70/23. This decree established a one-year period for State Societies to adopt this new legal structure.

The Milei Government clarified that the State should not assume roles that the private sector can perform more efficiently.

"When the State sets out to do things that the market does better, it fails to fulfill its most basic obligations, as demonstrated by the last 100 years in Argentina," they stated from the Executive.

"The function of banking services such as holding deposits and extending lines of credit is a good example of something the private sector does better," they expressed.

Elimination of Privileges

Currently, Banco de la Nación Argentina has 244 employees in managerial positions, who receive an average net monthly salary of 5,900,000 pesos. It is important to remember that, before the arrival of the Milei Government, many of these positions were passed down hereditarily.

Additionally, the entity has six companies within its structure:

• Nación Seguros, linked to the management of Alberto Fernández.
• Nación Reaseguros.
• Nación Retiro.
• Nación Servicios.
• Nación Bursátil.
• Fondos Pellegrini.

Zero Deficit and Inflation Reduction

The reorganization process of state companies has as its main objective eliminating the fiscal deficit and reducing inflation.

The success of the economic program in price stabilization boosted the credit market in the country, as demonstrated by the growth of mortgage loans. With an orderly and balanced macroeconomy, the market can guarantee access to credit without the need to subsidize rates.

The conversion of Banco de la Nación Argentina into a Sociedad Anónima will allow optimizing its legal and operational structure, providing it with greater flexibility in its management and facilitating its alignment with the best practices of the financial sector.

This change will enable the incorporation of more efficient and transparent corporate governance mechanisms, in addition to a professionalized administration in line with international standards, making it more competitive and attractive.

Finally, in line with current regulations, the new structure of Banco de la Nación Argentina S.A. establishes that the National State will retain 99.9% of the share capital and will exercise its political rights through the Ministry of Economy. The Fundación Banco Nación will hold 0.1% of the share capital.