Milei’s Cuts Are Making Credit Harder to Collect in Argentina

President Javier Milei’s austerity drive has helped steady Argentina’s economy, and yet, financial pressure keeps mounting on consumers and businesses.

Banks in recent weeks started recording initial signs of credit deterioration. Overdue credit card balances climbed to 2.8% in March, the highest in three years, while defaults on personal loans jumped to 4.1%, the highest in nine months, according to the country’s central bank. The number of bounced checks is on the rise, too.