Argentina sees record household debt and loan defaults

Argentina's loan delinquency has risen to its highest level in two decades. The private sector default rate reached 7.6% in May after 19 consecutive months of growth. Household arrears climbed from 2.5% in October 2024 to 12.3% in May 2026, driven mainly by personal loans (14.9%) and credit‑card debt (12.5%), which together account for 73% of total irregular balances.

Fintech and virtual‑wallet defaults surged from 7.3% to 29.6%, surpassing the pandemic‑era record. Of the 20.9 million registered debtors, 5.8 million are now in arrears, according to the Central Debtors Registry (CENDEU). Young adults are particularly affected, with nearly 40% of those aged 18‑34 delinquent and a 40.9% arrears rate among those under 24. The highest regional delinquency rates are in Cuyo and the Northwest (Rioja 22.8%, San Luis 20.1%, Catamarca 20.0%); the lowest are in La Pampa (9.1%) and Buenos Aires City (10.1%).

Corporate delinquency remains lower at 3% but is rising, with construction most impacted (7% irregularity), followed by accommodation and food services (6.9%) and administrative activities (5.5%). The report from the Centro de Economía Política Argentina (CEPA) attributes the surge to a sharp decline in real wages, challenging the government's narrative that blames financial ignorance or speculative devaluation.