Rising debt among Argentina’s youth threatens Milei’s support ahead of 2027 election
Young Argentines are drowning in personal debt, sparking protests and a congressional push for interest-rate caps that could erode President Milei’s popularity.
Borrowers under 25 now have the highest delinquency rate in Argentina, at 37.6%, according to the Center for City Studies, as many young people resort to high-interest mobile payment apps. Law student Martín Taborda, who dropped out after accruing $1,300 in debt, exemplifies the hardship, describing himself as feeling like a parasite. Opposition legislators have called a special session of Congress to debate interest-rate caps and debt-renegotiation measures, with labor unions planning protests outside the debate.
President Javier Milei and Economy Minister Luis Caputo have rejected calls for state assistance, saying debts are private issues between borrowers and lenders. The mounting debt burden is eroding Milei’s support among the youth who propelled him to power, with recent polls showing his approval falling to 33% ahead of the 2027 election.
Why it matters
Growing youth debt threatens Argentina's economic reforms and could shift the outcome of the next presidential election.
How this story developed
- Sep 4 Milei vows sanctions on offshore drilling and reasserts Argentine claim to Falklands
- Sep 4 Milei added a sanctions package targeting offshore drilling around the Falklands.
- Sep 4 Argentina's president Javier Milei announced plans to sanction firms extracting oil in the Falklands, while the UK foreign secretary reiterated its firm claim over the islands.
- Sep 4 The country's far‑right president Javier Milei said in a national address that the "winds of change" favoured Argentina's claim to the islands, which they refer to as Las Malvinas.
- Sep 4 Ed Miliband affirmed Britain will protect the Falklands’ self‑determination.
- Sep 4 Milei announced sanctions on firms extracting oil in the Falklands.
- Sep 5 Milei singled out the Sea Lion oil field, a joint UK‑Israel venture scheduled for 2028 production, as a target for sanctions.
- Sep 5 Kemi Badenoch accused Argentine Prime Minister Andy Burnham of weakness over the Falklands dispute.
- Sep 5 Milei announced sanction proceedings against 45 individuals and companies linked to oil exploration near the Falklands.
- Sep 8 Argentina said Navitas violated Argentine law in the North Falkland Basin.
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