Milei Rejects Aid for Households as Argentina Debt Delinquency Hits 12.8%
Updated
Updated · Buenos Aires Herald · Aug 3
Milei Rejects Aid for Households as Argentina Debt Delinquency Hits 12.8%
1 articles · Updated · Buenos Aires Herald · Aug 3
Summary
Argentina will not step in to help indebted households, Javier Milei said, insisting record loan arrears should be resolved through refinancing talks between banks and borrowers.
12.8% of household credit was delinquent in May—the 19th straight monthly rise and the highest level in more than two decades—while arrears at fintechs and digital wallets topped 32%.
Personal loans and credit cards have deteriorated most since late 2024, hit by high interest rates, a peso run before the 2025 midterms and wages still below pre-Milei levels.
Milei argued lower inflation, rating upgrades and a drop in country risk to 420 basis points from 1,500 after the election will ease borrowing costs and support longer repayment terms.
CIFRA estimates the minimum wage has lost more than 40% of its purchasing power under Milei, underscoring the broader squeeze behind rising household stress.