Central Bank of Argentina caps credit card interest rates

The Central Bank of Argentina (BCRA) has established a 66.44% annual nominal rate as a reference limit for credit and purchase card financing issued by non-financial companies for the September billing cycle. This cap is based on the weighted monthly average of interest rates for unsecured personal loans within the financial system during August.

The regulation applies different mechanisms depending on the issuer. For non-financial companies—including major retailers such as Cencosud S.A., Carrefour Argentina, Tarjeta Naranja X, Coto CICSA, and Falabella—the compensatory interest rate cannot exceed the central bank's reference average by more than 25%. For financial institutions, the rate applied to card financing cannot exceed 25% of the rate the specific bank charges for its own personal loans.

This measure comes as Argentine households face significant financial pressure. Delinquency rates for credit cards reached 12.6% in June, while overall household loan delinquency stood at 12.8%. The regulation aims to address rising levels of household debt as consumers increasingly use credit to cover current living expenses.