Argentina sees record loan delinquency, 7 million lose credit access

Argentina's loan delinquency rate rose to 12.7% in May 2026, marking the nineteenth consecutive month of increase. The surge has pushed almost 7 million people out of the credit market, an unprecedented level of financial exclusion since the end of the Convertibility era.

The problem is most acute among younger borrowers: 42.8% of those aged 18‑25, 39.3% of ages 26‑35 and 31% of ages 36‑45 are in arrears. Public banks have largely maintained lending volumes, while private banks sharply cut new credit in early 2026. Among non‑financial lenders, delinquency jumped to 32.2%, up from 10% just 18 months earlier. Analysts note that credit’s share of the economy remains small, so the rise in arrears may not halt GDP growth over the next year. The government continues to prioritize exchange‑rate control and interest‑rate volatility.