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Household Loan Delinquency Hits Multi‑Decade Highs as Local Bailouts Multiply

Millions of borrowers can no longer repay short‑term consumer loans after falling real incomes coupled with rising living costs

Overview

  • May 2026 data from multiple consultoras show system irregular loans rose sharply from late 2024 levels with measures reported near 9.7% by Equilibra and about 13.2% by Fidelitas, the highest since the early 2000s.
  • The problem is concentrated in households not firms, with personal delinquency estimates near 16–20% while corporate delinquency remains around 4%, and roughly 3.6 million people have debts over a year past due.
  • Delinquency is geographically uneven with several provinces reporting family moras above 30%—San Juan, Catamarca, San Luis and La Rioja among the worst—and younger adults show the steepest increases in long‑term arrears.
  • Non‑bank lenders including fintechs, mutuals and retail credit providers carry much higher default rates than traditional banks, raising recovery costs and leaving many borrowers shut out of formal refinancing.
  • Provincial governments have rolled out targeted refinancing programs such as Banco Provincia’s ‘Ponete al Día’ while the central bank and national government have not launched a universal rescue, creating fiscal and political pressure ahead of 2027.