09/07/2026 13:30 - Economia
The rapid expansion of consumer credit in Argentina during 2024 and early 2025 has led to a sharp increase in loan defaults, reaching levels not recorded in over twenty years, according to local media iProfesional and Infobae.
For Argentine households, the share of unpaid personal loans climbed to 12.7% by May 2026. In response, banks accelerated the refinancing of clients struggling to pay their monthly installments.
Data from the Central Bank of Argentina shows that between October 2025 and May 2026, the stock of refinanced personal financing nearly doubled, jumping from $1.09 trillion to $2.47 trillion Argentine pesos, marking a 127% increase in just seven months. Refinanced loans now account for 26.1% of all delinquent loans, up from 22.6% seven months earlier.
Banco Galicia holds the highest volume of refinanced debt, with its stock growing from $472.58 billion to $936.02 billion (a 98% increase). However, in terms of relative growth, other institutions are leading the way:
| Bank | Relative Growth | Stock by May 2026 |
|---|---|---|
| BBVA | +288% | $253.869 billion |
| Banco Macro | +259% | $217.184 billion |
| Banco Nacion | +235% | $267.188 billion |
| Santander | +146% | - |
| Banco Provincia | +132% | - |
Argentina's Minister of Economy, Luis Caputo, reportedly downplayed the situation, stating that the increase is expected after an extraordinarily rapid credit expansion and does not pose a risk to banking stability.
Various Argentine provinces have launched programs to assist the hardest-hit families. (Note: In Argentina, provinces have their own governments and public banks that can implement regional financial policies).
Banco Nacion (Argentina's largest public bank) introduced the Client Regularization Program for Default Situations at the end of June. This tool allows refinancing debts in pesos or UVA (Unidad de Valor Adquisitivo, an inflation-indexed unit) with terms of up to 120 months (10 years). The rate varies by profile: 12% TNA for those who receive their salary at the bank, and 14% TNA for self-employed workers or freelancers (monotributistas).
Additionally, previous alternatives remain available, such as debt consolidation (maximum 72 months, 65% TNA, up to $100 million ARS) and refinancing credit card balances with up to 90 days of arrears (35% TNA and a 60-month term).
Alfredo S. Quiroga
