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[BUSINESS] · Argentina · 32 sources

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Argentina household loan delinquency hits 20-year high

Argentina is facing a significant rise in banking delinquency, with household loan defaults reaching 12.9% in July. According to the Central Bank of the Argentine Republic (BCRA), this represents a 20-year high and more than doubles the delinquency rate from the previous year, which stood at 5.6%.

Specific sectors show varying levels of distress. Personal loan delinquency rose to 16.7%, while credit card defaults reached 12.8%. Corporate loan delinquency also increased slightly to 3.6%. The BCRA attributed the rise to a real reduction in the total financing stock and a real increase in the irregular portfolio.

In response to the rising debt, major financial institutions have launched refinancing programs. Banco Nación has introduced options including UVA-indexed loans with a 7.5% TNA and peso-based refinancing at a 25% TNA for timely payers. Similarly, Banco Ciudad has reduced its interest rate to 28% TNA for personal loans, credit cards, and microcredits under its Family Debt Relief Program.

Entities

Argentina · Banco Central de la República Argentina · Banco Ciudad · Banco Nación · Buenos Aires · Central Bank of the Argentine Republic

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