Argentina faces surge in credit delinquency, 7 million cut off from loans, youth hardest hit

A recent report from Argentina’s central bank shows that arrears on personal loans and credit‑card debt rose for the 19th consecutive month, reaching one of the highest levels of the past two decades. By May, almost seven million Argentines were barred from obtaining new credit, reflecting the deepening loss of purchasing power and rising financing costs.

Young borrowers are disproportionately affected. Nearly 40 % of those aged 18‑21 who took a loan are in default, and nine out of ten of them incurred debt before securing their first formal job. The default rate climbs with younger entry ages – 44 % for 19‑year‑olds versus 31 % for those who first borrowed at 21. Fintech lenders report higher delinquency rates than traditional banks, and the overall youth default rate is especially high among people under 35.

Stakeholders warn that widening delinquency limits household consumption and may prompt lenders to tighten credit conditions further, deepening financial exclusion.