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Argentina's Household Debt Jumps to $5.6 Million Per Borrower as BCRA Warns on Credit Quality

The central bank is loosening policy to pull borrowers toward cheaper bank loans following mounting delinquencies in the fast‑growing nonbank sector.

Overview

  • Latest PNFC data to July show average debt per client up 75% year over year to $5.6 million, with 6.2 million people owing in both bank and nonbank channels.
  • Balances average $4.4 million with banks and $1.2 million with nonbank lenders, which comprise 542 providers extending about $11 trillion.
  • Overall delinquency reached 8.6% and is far higher outside banks, with roughly 15% irregularity and segment moras of 20% in personal loans, 18% in wallets and 27% in appliance financing.
  • Borrowing costs far exceed inflation, with a 129% nominal annual rate on nonbank personal loans and about 92% on credit cards versus 36.6% year‑on‑year inflation in July.
  • The BCRA cut its reference rate from 22% to 20% and relaxed reserve requirements to mobilize bank credit, cautioning that portfolio quality could deteriorate further if servicing conditions do not improve.