Argentina banking sector faces rising debt recidivism

Financial institutions are reporting a rise in recidivism among borrowers who had previously refinanced their debts. Despite efforts to stabilize portfolios, a significant portion of clients who entered repayment plans have failed to maintain payments and have fallen back into delinquency.

Some banks report that approximately 30% of those who refinanced their commitments have defaulted again. This trend comes at a time when certain indicators suggested a potential ceiling for credit deterioration. According to the Central Bank, household delinquency stood at 12.9% in July, compared to 12.8% in June, while irregularity in total private sector credit was at 7.7%.

While early delinquency—delays of less than 90 days—had shown signs of improvement, dropping from a peak of over 6 points in November 2025 to around 4 points in July, the recurring defaults among refinanced clients are causing concern regarding the normalization of banking portfolios.