The total amount of credit issued in Argentina exceeded 11 trillion pesos, with an annual growth of 144% in personal loans and 53% in credit cards. The delinquency rate among both banking and non-banking entities also rose to 8.6%, more than doubling the rate recorded in January, as detailed by the body headed by Santiago Bausili. Considering only non-banking entities, the delay in payments is longer: the default rate on personal loans made by fintechs and other non-bank creditors stands at 20%. Regarding virtual wallets, the non-payment rate drops to 18%, and they are expanding more in the purchase of home appliances, reaching 27% as reported by the Central Bank. "The increase in this portion of the portfolio suggests a further deterioration in credit quality, independent of that captured by the traditional indicator of irregularity, and poses the risk of a possible future increase," stated the BCRA. The other problem lies in interest rates and their increases. The Annual Nominal Rate (TNA) on personal loans granted by non-bank creditors rose to 129%. In July, inflation compared to the same month of 2024 was 36.6%, while the cost of maintaining credit cards was 92%. However, the Central Bank has begun to lower rates, and this Thursday it cut the benchmark interest rate from 22% to 20%. This rate is what the monetary authority pays when banks borrow money or deposit their excess daily operational funds. The objective is for traditional banks to grant credits at a lower cost, making them more accessible for people, and at the same time to implement an expansionary monetary policy. According to the report on Non-Financial Credit Providers (PNFC) published semi-annually by the Central Bank of the Argentine Republic (BCRA, the total debt incurred by clients with banks and non-banking entities—virtual wallets, credit cards, supermarket chains, among others—exceeds $5.6 million and increased by 75% in one year. On average, each client owes $5.6 million between financial entities and the rest of the wallets. With data updated to July, the total number of people who contracted debts stands at 6,200,000. Compared to the previous year, the amount owed per person increased by 75%, rising from $3.2 million to over $5.6 million. From the average per banking client, the outstanding balances are $4.4 million, to which is added the debt incurred with non-banking entities, which amounts to $1.2 million. The BCRA report details that in Argentina, outside the traditional banking system, there are 542 companies that give credit to individuals.
