While the pandemic takes a breather, the economy is still forcing many sectors of society to tighten their belts
. High inflation, loss of purchasing power and negative employment prospects combine to make it difficult to meet debts. Thus, the default of companies and families with the banking sector has been rising in the last two months.
According to data from the
0.6 percentage points above the previous month.
In families, delinquency reached 5%,
one percentage point more than in June, and in companies this indicator is 5.8%. In personal loans delinquency reaches 7% and in mortgages is only 1.3%.
The pandemic had opened a waiting period
for debtors that was closed at the end of May this year. In June ended the transitional scheme that the Central had established at the beginning of the quarantine and that allowed to alleviate the situation of debtors. Thus, since June, the parameters to measure the irregularity in the credit system were normalized.
In May, the consulting firm Moody’s had warned that the situation would be complicated when the BCRA’s palliative measures ended. “However, we understand that this effect will be mitigated by the high levels of provisioning that the financial system as a whole has on its non-performing portfolio,
as well as by the recovery in the level of general activity, which will have a positive impact on the payment capacity of debtors”.
The data of the Banks Report show that as of June, delinquency began to increase. For families that month went from 3% to 4.1%. The highest irregularity was recorded in personal loans, where it reached 5% in June, followed by credit cards, with 4.8%. The lowest was for collateral loans, with only 1.9%, followed by mortgages with 0.9%.
July’s data show an even more worrisome picture, with household delinquency at 5%. This implies that from one month to the next the number of households with problems to pay their bank debts grew 22%
In the case of personal loans, in 30 days the delinquency went from 5 to 7.1%, a jump of 42%. For cards, there was almost no change, only an increase from 4.8% to 4.9%. For pledges, the arrears doubled from 1.9% to 3.8%. And for mortgages went from 0.9% to 1.3%, a jump of 39%.
In companies, in July there was an advance of only 0.1%, compared to the record of June, to 5.8%
There is still an umbrella that covers the sectors that are still affected by the pandemic
. The reason is that it is still in force a measure of financial relief for debtors who are employers reached by the REPRO II program, which gives them the possibility of transferring to the end of the life of the credit unpaid installments.
, today they have problems to pay their debts”.
“What is causing workers to lose purchasing power is the fact that the
, which generates high inflation and reduces the purchasing power of the pesos people have,” Abram notes.
In addition to the loss of purchasing power, “investment has been very low for some time now, which means that less is produced over time and therefore less is earned. For Abram “these two factors have made the population in general has been impoverished
, and obviously the impoverished population has more difficulties to pay their loans”.
“The same goes for businesses. Although we have seen a recovery with respect to the floor of the second quarter of last year, the reality is that there are many companies, particularly in services, which are very bad,” Abram remarked. “In fact, the level of activity is still lower than it was before the pandemic, so it is not surprising that companies are also having trouble paying their loans.
More debts to public banks
?The report shows that delinquency is higher in public banks
, where it reaches 8%, against 5.7% average of the system, while in private banks it is higher in the national ones -4.2%- than in the foreign ones -3.5%-.
These data of rising delinquency are wielded by banks to justify why they do not increase the spending limits of credit card users
. The issue generated friction with the government in the weeks leading up to the PASO, because many users found that they could not access the Ahora 12 program promoted by the government to stimulate consumption because the limit of their plastic is insufficient. In this regard
, the Secretary of Domestic Trade, Paula Español, said they are already working with the