Bank credit in Argentina has grown in recent years, but delinquency has increased, and non-bank debt still affects 6 out of 10 households, according to a report by the consulting firm Focus Market. The report revealed a 'transformation in the financing pattern' over the last two years, detailing the increased access to bank credit and a reduction in informal debt. Thus, it showed that in 2023, 41.3% of households had debts with banks, and at the start of 2026, that figure rose to 55.1%. In contrast, non-bank debt fell from 82.6% to 59% in the same period. The stock of loans to the private sector reached 13.6% of GDP in January 2026, more than doubling the 5.2% recorded when Javier Milei took office in December 2023. Focus Market's director, Damián Di Pace, stated that 'the main factor behind this expansion is the lower absorption of resources by the State, which freed up the system's lendable capacity towards the private sector.' He added that 'to this were added the deceleration of inflation and greater economic predictability, which improved the confidence of both households and financial entities.' However, the proportion of debt in arrears almost quadrupled in twelve months, rising from 2.7% in January 2025 to 10.6% in January 2026. Credit cards followed a similar path, increasing from 2% to 11%. This is followed by non-payment of taxes (20.8%) and loans from family or friends (15.9%). The consulting firm warns that the 'solidarity cushion' is being exhausted, as loans between family or friends represented 35.4% of non-bank debt in 2025 and have now fallen by almost 20 percentage points. It also highlights that 'the advance of debts for basic obligations is concerning.' Non-payment of maintenance fees rose from 1.4% to 4.9%, school fees from 0.7% to 3.1%, and utilities (light, gas, water) from 2.3% to 5.4%. In this context, Di Pace expressed that 'the reduction in the interest rate plays a central role in the dynamics of household indebtedness in Argentina, especially in contexts of high financial pressure,' emphasizing that 'a reduction in the cost of credit alleviates the burden of debt services, improves payment capacity, and helps to moderate delinquency levels.' However, he warns that for the expansion of credit to be sustainable, 'it must be accompanied by macroeconomic stability and predictability in the real income of workers.'
