Household Delinquency Reached 28% in July, New Record
Household credit delinquency increased in July, reaching a new record. According to a report by consulting firm 1816, 5.9 million people have household debts in irregular situations, representing 28% of Argentines with some form of credit. The total delinquency rate in the non-financial private sector rose from 7.63% in June to 7.73% in July. Family delinquency grew from 12.77% to 12.94%, while that of companies increased from 3.50% to 3.61%. This increase is due to the real decline in credit to families, which reduces the total stock of loans and increases the proportion of delinquent debt. Refinancings also grew, reaching 3.7% of total credit to families and 0.8% of financing to companies. Households refinanced debts amounting to approximately 2.6 trillion pesos. Family delinquency increased in 23 of the 30 main financial entities. In non-financial entities, delinquency reached 33.69% in July. Although 65% of the total delinquent amount is in the traditional financial system, there are more people with delays in non-financial entities, with 4.2 million compared to 3 million in banks. The average debt of those in delinquency is 4.8 million in financial entities and 1.2 million in non-financial ones. Half of the people with irregular credits owe less than 626,000 pesos. Argentina presents a delinquency rate of 7.7% on total credit, with irregular credits equivalent to about 1.1% of GDP.
-- Price
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