The delinquency rate for credit in Argentina continued to rise, according to an April 10 report from consulting firm 1816 based on Central Bank data. The report shows that non-payment of loans increased again in February and now affects both banks and non-bank financial entities.
Overall, the private sector’s delinquency rate rose from 6.4 percent to 6.7 percent within a month. The increase is especially notable among household loans, where the indicator climbed to 11.2 percent after more than a year of continuous growth—reaching levels not seen since 2004.
The situation is even more pronounced among fintech companies and virtual wallets, where the delinquency rate reached nearly 29.9 percent—almost three times higher than that of traditional banking institutions. This figure highlights growing difficulties for users trying to meet their payment obligations amid high interest rates and declining purchasing power.
The report notes that this trend is widespread across most financial institutions in the country, indicating a structural problem rather than isolated incidents.
Key factors contributing to rising delinquencies include high borrowing costs—with nominal annual rates around 70 percent—and falling real incomes that reduce families’ ability to pay back loans. Additionally, there has been lower demand for credit and stricter lending policies by financial entities.
Virtual wallets and non-bank lenders are considered particularly vulnerable as they focus much of their portfolios on individual consumers—the group most affected by the current economic crisis.
