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12h ago

Argentina’s Household Loan Delinquencies Hit 15-Year High as Banks Tighten Credit

Steep borrowing costs paired with lagging wages are squeezing borrowers, prompting banks to curb new lending.

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Los créditos a las familias alcanzaron cifras récord.
La morosidad en las tarjetas de crédito creció por octavo mes consecutivo.
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Overview

  • Family-loan delinquency reached 5.2% in June, the highest since the BCRA began the series in 2010.
  • Credit card past-due balances climbed to 4.9% in June, marking an eighth straight monthly increase and the second-highest level in 15 years.
  • Personal-loan delinquency jumped to 6.5% from 5.6% in May, underscoring the stress concentrated in short-term consumer products.
  • The overall irregularity ratio for private-sector credit rose to 2.9% in June, with the BCRA noting a broad-based deterioration across institution groups.
  • Lending volumes still expanded, with credit in pesos up 4.2% in real terms in June, even as nominal borrowing costs hovered near 75% annually by mid‑August and banks began limiting financing offers.