Overview

• Central bank data show household loan delinquency at 5.2% in June, the highest reading since the BCRA series began in 2010.
• Credit‑card arrears reached 4.9% in June after eight consecutive monthly increases, while personal‑loan defaults rose to 6.5% from 5.6% in May.
• Overall nonperforming loans to the private sector climbed to 2.9% in June, with deterioration concentrated in short‑term consumer credit.
• Lending remains buoyant, with credit in pesos up 4.2% in real terms in June and roughly 78.1% year over year, lifting household debt stocks.
• Banks have started limiting new financing as market rates rise and asset quality weakens, and analysts warn of risks to consumption and bank profitability if the trend persists.