Argentine household arrears reach 17.5% and the government rules out intervening

In June, the percentage of credit arrears among Argentine households hit 17.5%, as reported by Universidad Austral and consultancy Eco Go, based on data from the central bank. Economy Minister Javier Milei's administration maintains that the solution to the issue must come from the market, rather than intervening. The report, which includes both bank and non-bank financing, indicates that 20.4 million people, or 26.1% of those with credit, are over 90 days late on their payments.

Individual lending totals 97.1 trillion pesos, roughly 64.7 billion dollars. This figure represents a 20-month streak of increasing arrears. The issue has worsened significantly, with irregular balances rising from 3.6% in December 2024 to 17.5% in June. The study notes that comparisons might be misleading due to the central bank's change in the threshold for reporting debts, from 1,000 to 25,000 pesos, since July 2024.

Central Bank deputy governor Vladimir Werning mentioned that bank arrears peaked in the second quarter of 2025. The phenomenon is attributed to the credit cycle stagnating, the shift in the macroeconomic regime, and the global expansion of digital credit. Inflation remains a significant factor at 33.8%. Economist Marina Dal Poggetto, who authored the study, also blamed the situation on the government's economic policies.