Argentina faces soaring household debt and record moratorium amid Milei’s reforms

The Argentine peso has plunged to historic lows, trading around 1,487 per US dollar—a loss of roughly 99.8% since 2009. The devaluation accelerated after President Javier Milei implemented fiscal tightening, cutting spending and subsidies.

Household indebtedness has surged. Data from the Central Bank and analyst firms show that delinquency rose to 15.9% of borrowers in May, affecting about 5.3 million people. Youth under 24 carry the highest arrears, with an average delay of over one million pesos. Overall consumer debt totals about 74.9 trillion pesos (≈6.6 % of GDP), split between banks (≈83 %), fintechs (≈10 %) and other lenders.

Regional differences are stark: the province of Buenos Aires records the highest share of late‑payment debt (37.8 % of its borrowers). Delivery‑app couriers are also increasingly indebted, relying on high‑interest loans from platform‑run credit schemes.

The government, through spokesperson Adrián Ravier, has blamed “lack of financial education” for the moratorium, while critics argue that Milei’s policies—sharp wage erosion, high interest rates and reduced social spending—are the root cause. A separate report notes that public‑debt‑to‑GDP ratios have fallen as the administration claims fiscal surplus for a second year.

These dynamics illustrate the deepening financial strain on Argentine families amid a broader economic overhaul.