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Argentina faces rising household debt and record delinquency rates
Argentina is facing a severe household debt and income crisis. According to data from Zentrix Consultora, 60.2% of Argentines took on debt or credit in the last six months. Most of this borrowing is driven by necessity, with 76% of debtors using funds to cover essential costs such as food, health, utilities, and services.
The economic strain is evidenced by the speed at which household incomes are exhausted; 65% of respondents report running out of money before the 20th of the month. This impact is most acute among lower-income sectors, where 87.6% run out of funds by the 20th, and among young people aged 18 to 39, where 83.3% face similar shortages.
Banking data from the Central Bank of the Argentine Republic (BCRA) shows that the delinquency rate for family loans reached 12.9% in July, the highest level in over 20 years. This represents a 130% year-on-year increase in the number of people with payment arrears. Additionally, Mercado Pago accounts for 19% of the country's defaulters.
In the corporate sector, SME financing costs rose, with the nominal annual rate for SME financing reaching 27.76% in August.
Entities
Argentina · Banco Central de la República Argentina · Banco Nación · Central Bank of Argentina · Central Bank of the Argentine Republic · Mercado Pago · Universidad Austral · Zentrix Consultora
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 8 SOURCES] 60.2% of Argentines took on debt or credit during the last six months. www.leguas.com.ar · prensaactivadigital.com.ar · almafuertenoticias.com.ar · alternativaenpapel.com.ar · diarioconurbano.com.ar · +3 more
- [● 10 SOURCES] 76% of those who took on debt did so to cover food, health, utilities, and services. www.leguas.com.ar · prensaactivadigital.com.ar · almafuertenoticias.com.ar · alternativaenpapel.com.ar · diarioconurbano.com.ar · +5 more
- [● 3 SOURCES] The delinquency rate for loans to families reached 12.9% in July. www.diario3.com.ar · www.perfil.com · hoydia.com.ar
- [● 10 SOURCES] 65% of Argentines run out of income before the 20th of the month. www.leguas.com.ar · prensaactivadigital.com.ar · almafuertenoticias.com.ar · alternativaenpapel.com.ar · diarioconurbano.com.ar · +5 more
- [● 3 SOURCES] The delinquency rate for family loans is the highest recorded in over 20 years. www.diario3.com.ar · www.perfil.com · hoydia.com.ar
- [● 2 SOURCES] Banco Nación announced new conditions to refinance unpaid obligations, including reduced rates and extended terms. www.diario3.com.ar
- [○ 1 SOURCE] The nominal annual rate for SME financing rose to 27.76% in August. bankmagazine.com.ar
- [○ 1 SOURCE] Mercado Pago accounts for 19% of the country's defaulters. www.perfil.com
- [○ 1 SOURCE] The delinquency rate for family loans increased 130% year-on-year. www.perfil.com