Loan delinquencies in Argentina have reached 17.5%
The share of delinquent loans to individuals in Argentina reached 17.5% of total lending in June. President Javier Milei’s government is refraining from direct intervention, believing that the market should resolve the situation, MercoPress reports, citing a study by Austral University and the consulting firm Eco Go.
The study covers both bank and non-bank financing. According to its data, 20.4 million people had loans, and 5.3 million of them—or 26.1%—were more than 90 days past due. The total volume of loans to individuals amounted to 97.1 trillion Argentine pesos, estimated at approximately $64.7 billion. As of June, delinquencies had been rising for 20 consecutive months.
The share of non-performing loans rose from 3.6% in December 2024 to 12.6% a year later and 17.5% in June. At the same time, the study’s authors caution against direct comparisons of the figures: starting in July 2024, the central bank raised the minimum debt threshold that lenders are required to report from 1,000 to 25,000 pesos. The central bank’s official figure, which covers only the financial system, stood at 12.8% in May—the highest level in more than two decades.
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Non-bank lenders, including digital wallets and non-bank card issuers, account for 14.1% of the loan portfolio but have a delinquency rate of 31%. For banks, financial companies, and credit unions, this figure stands at 15.2%.
Marina Dal Podgetto, director of Eco Go, attributed the rise in delinquencies to the halt in the credit cycle in early 2025, changes in the macroeconomic environment, insufficient household incomes, and high interest rates. According to her estimates, the nominal annual interest rate on personal loans at private banks ranges from 55% to 172%, and at digital wallets—from 48% to 260%. Annual inflation stands at 33.8%.
Economy Minister Luis Caputo acknowledged that some interest rates are “excessive” and proposed refinancing, but insisted on a market-based solution. About 30 bills have been introduced in the Argentine Congress, and the provinces of Buenos Aires and Santa Fe, as well as the capital, are offering refinancing programs.
