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3d ago

Argentina’s Costly Credit Squeeze Fuels Rising Delinquencies

Banks report higher funding costs tied to exchange-rate defense, pushing total borrowing costs on consumer credit to triple digits.

La morosidad en tarjetas y préstamos personales ya supera el 5% por la suba de tasas.
La contracara de la estrategia oficial para contener el dólar es el encarecimiento del crédito y como consecuencia una suba en la morosidad
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Sube la morosidad en créditos personales y tarjetas por mayores costos financieros

Overview

  • Official May data show credit card delinquency at 4.2% and personal loans at 5.6%, with lenders warning the climb continued in recent months and could worsen toward year-end.
  • Banks cite nominal rates of roughly 76%–90% TNA on unpaid card balances, with total financial cost above 100%, while multi‑year personal loans can exceed 140% CFT.
  • Lenders attribute the repricing to policies aimed at stabilizing the peso that lifted market rates, tightened liquidity and curtailed household financing.
  • Taxes compound the burden on borrowers, as 21% VAT on interest and provincial gross‑receipts levies near 9% inflate the effective cost of debt.
  • Credit card usage keeps expanding: First Capital reports July balances up 5.3% from June to 20.5 trillion pesos, a 107% nominal increase from a year earlier.