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Argentina Household Delinquencies Reach 20-Year High as Non-Bank Defaults Far Exceed Banks

Analysts link the spike to steep, volatile borrowing costs that are curbing new credit.

Overview

  • Household loan irregularity reached 10.6% in January, marking a 15th consecutive monthly increase, according to Consultora 1816.
  • The rise was broad-based across the 25 largest banks, signaling a macro trend rather than bank-specific issues.
  • Non-financial lenders show far greater stress, with roughly 24–27% of loans in irregular status, a rising share over 90 days past due and more borrowers deemed irrecoverable.
  • Corporate delinquency averages about 2.7–2.8%, but large firms are near 0.9% versus roughly 4% for SMEs, with construction, apparel, textiles and furniture sectors near 6–8%.
  • The government characterizes the strain as temporary, while consultants and banks warn that high real rates near 40% in banks and about 150% in non-banks are pressuring balances and restricting new lending.