Argentina's household debt surge amid IMF confidence in government repayment

Argentina’s central bank reported that arrears hit a 20‑year high of 12.1% in April, with the Instituto Argentina Grande estimating one in four families cannot meet basic expenses and are deepening into debt. The study cites 20.7 million debtors, 5.6 million of whom are three months or more behind, and 3.3 million households in arrears of a year or longer, representing 16.8% of all debt.

The International Monetary Fund reiterated confidence that Argentina will honour its obligations, despite its own staff flagging "exceptional risks" such as low liquid reserves, large near‑term debt payments and political uncertainty ahead of the 2027 presidential election. Argentina faces roughly $23 billion in repayments due by 2027, including to the IMF.

Provincial authorities have launched debt‑relief schemes, offering refinancing lines with interest rates from 31% to 39% for households and small businesses struggling with credit‑card and personal‑loan debt. These programs aim to ease the pressure on families as the broader economy grapples with high inflation and fiscal deficits.