BCRA issues loan guidance and plans credit card coupon trading

The Central Bank of the Argentine Republic (BCRA) has issued guidance for consumers evaluating personal loans amid rising delinquency rates. In June, household credit delinquency stood at 12.8%, with personal loans reaching a 16.4% irregularity rate. The BCRA advises borrowers to look beyond nominal interest rates and focus on the Total Financial Cost (CFT), which includes commissions, insurance, and other fees. Additionally, the bank recommends comparing loan terms and understanding the difference between fixed and variable rates to avoid unexpected payment changes.

In a separate move to boost liquidity, the BCRA is finalizing a plan to allow credit card coupons to be traded as financing securities. This mechanism will function similarly to discounting deferred checks, enabling merchants to sell their rights to future installment payments for immediate cash. This initiative aims to support small and medium-sized enterprises (SMEs) by providing faster access to funds from sales made in installments. The project targets a market where credit card payments move approximately USD 8 billion per month.