The delinquency rate on loans to families in Argentina has reached 10.6% for the first time as reported by the Central Bank, reflecting a significant increase in borrowing issues.
In January, Argentina saw a notable rise in loan delinquency rates, with the overall irregularity of private credit reaching 6.4%, an increase of 0.8 percentage points from the previous month. The delinquency specifically for household financing surged to 10.6%, representing a 1.3-point increase from December. This trend indicates a growing struggle among families to keep up with loan repayments amid economic challenges,
The statistics were released in a report by the Central Bank, which highlighted that the rise in delinquency was widespread across various financial entities. While the corporate credit delinquency rate saw a smaller increase, recording 2.8%, the alarming jump in family loan delinquencies suggests that many households are facing severe financial strain. The increase comes as the economic landscape continues to be tough for many Argentine families.
Despite the rising delinquency rates, the Central Bank noted that the overall financial system maintains a high level of capital coverage against credit risk. The ratio of irregular loans — when accounting for available capital and provision records — stands at only 1.5% of regulatory capital, indicating that the banks are currently in a stable position to absorb the risk, even as many families struggle with debt.
