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[BUSINESS] · Argentina · 16 sources

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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

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about 11 hours ago