Debt trends rise in Argentina and Mexico

In Argentina, approximately 882,173 debtors had their financial obligations transferred to collection agencies in July, according to data from the Instituto Argentina Grande (IAG) based on Central Bank figures. This surge reflects growing household difficulties in meeting payments. The report notes a significant rise in long-term delinquency: individuals with arrears exceeding one year increased by 1,298,950, a 60% year-on-year expansion, while those with six months to one year of arrears grew by 63%.

In Mexico, the gross external debt reached a record $662.8 billion during the second quarter, driven primarily by the private sector and the general government. Despite the nominal increase, the debt-to-GDP ratio decreased slightly from 33.7% in the first quarter to 32.9%. The private sector accounted for 55.29% of this external debt position, while the government sector represented 44.71%.