Overview
- Private consultancy analysis of the central deudores database shows delinquency rose again in May, marking the 19th consecutive monthly increase and a rise from about 2.5% in October 2024 to 12.7% for households.
- Nearly 40 percent of borrowers under 35 now have at least one loan 90 or more days past due, with the worst rates concentrated in personal loans and cards.
- Non‑financial lenders such as retailer cards reported roughly 32.2 percent delinquency in May, a sharp jump from under 10 percent a year and a half ago and a major driver of the overall deterioration.
- Public banks helped limit a deeper credit contraction while private banks sharply cut new lending, leaving total loan balances too weak to dilute the growing stock of bad loans.
- The BCRA will publish official May figures at the end of July, officials have said Q2 might be a peak, and analysts say June and July cash flows will be decisive for whether delinquencies begin to ease before next year’s elections.