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3h ago

Argentina Loan Delinquencies Climb as Household Consumer Debt Sets Record

A jump in borrowing costs and weaker real incomes is straining borrowers, and the latest rate spike suggests further stress is likely in the next readings.

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Ya antes de la suba de tasas el nivel de incumplimiento venía en alza
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La morosidad viene subiendo fuerte, ante la suba de tasas y un poder adquisitivo que no mejora.

Overview

  • Overall bank credit irregularity reached 3.2% in July, extending a months‑long rise, according to the BCRA’s Informe sobre Bancos.
  • Household lending hit a series high near 5.6–5.7%, led by unsecured consumer lines as personal‑loan arrears rose to about 7.2–7.3% and credit cards to roughly 4.8–5.3%.
  • Corporate loan delinquency remained comparatively low at around 1.2%, while mortgage arrears stayed subdued and broadly stable.
  • Payment‑chain stress intensified, with the BCRA reporting higher rejected checks in July by both count and value.
  • Market financing costs surged after July—most notably the TNA on current‑account advances jumping from about 31% to 93% by Aug. 18—raising the risk that August and September delinquency data will deteriorate further.