Credit card usage falls 10.1% in August due to rising delinquency

Credit card operations decreased by 10.1% year-on-year in August, according to First Capital Group. This decline occurs in a context of delinquency in the segment close to 13%, according to the Central Bank (BCRA) report on banks from June. The quarterly drop was -3.4%, semi-annual -5.9%, and annual -10.1%. In July, delinquency in family loans increased, affecting 5.9 million people, equivalent to 28% of Argentines with some credit. In August, operations increased by 1.4% month-on-month, reaching a balance of 25.1 trillion pesos, with a year-on-year growth of 20.1% compared to 20.9 trillion pesos from the previous year. However, in real terms, the decline was 10.1% year-on-year and 0.3% month-on-month, with an acceleration in contraction. The estimated inflation is 1.7% month-on-month and 33.5% year-on-year. The financed balance in dollars decreased by 15.9% month-on-month, reaching 670 million dollars, with a year-on-year growth of 1.5% compared to 660 million dollars from the previous year. Demand remains stable thanks to tourism and international purchases.