Non-performing loans in Argentina’s financial system rose sharply in December 2025, signaling a deterioration in portfolio quality, according to data released by the Central Bank of the Argentine Republic (BCRA). Delinquency rates on loans to households climbed to 9.3% in December, the highest level in 16 years and triple the rate recorded a year prior, driven by increasing pressure on real incomes and rising credit costs.
The BCRA’s banking report indicated that personal loans, with an irregularity rate around 12%, and loans with collateral guarantees were primarily responsible for the increase in non-compliance. This trend reflects strains on financed consumption following a year of strong credit growth coupled with signs of economic deceleration.
Overall credit irregularity in the private sector increased by 0.3 percentage points in the month, reaching 5.5% system-wide. Yet, the deterioration was more pronounced in the household segment, where the delinquency rate rose by 0.5 percentage points in December.
Corporate loan delinquency also increased, though remaining at relatively contained levels. The ratio of non-performing corporate loans advanced by 0.2 percentage points to 2.5%, still significantly below household levels. The increase was largely attributed to companies linked to commerce and primary production, sectors more sensitive to economic slowdown and short-term financial pressures.
Despite the rising delinquency rates, the financial system maintains substantial provisioning levels. At the complete of the year, provisions constituted 93% of the irregular portfolio, although this ratio decreased by 3.9 percentage points monthly. Provisions relative to the total portfolio equaled 5.2%, an increase of 2.6 percentage points year-on-year.
Financing to the private sector continued to expand in December, increasing by 0.6 percentage points of total assets to reach 43.9%. Throughout 2025, total credit to the private sector grew by 8.6 percentage points of the financial system’s assets, with strong growth in both peso-denominated loans (+4.7 percentage points year-on-year) and foreign currency loans (+3.9 percentage points year-on-year). Both corporate and household loans increased their share of the system’s assets by 4.6, and 4.0 percentage points year-on-year, respectively.
The BCRA reported in its Monetary Policy Report, published January 29, 2026, that it continues to focus on consolidating the decline in inflation. According to the report, financing to the private sector in pesos expanded 27.4% in real terms in 2025, with greater dynamism in lines with real collateral. The BCRA also canceled operations with the U.S. Treasury Department in December 2025, as part of a USD 20 billion exchange stabilization agreement announced in October 2025.
The combination of expanding credit and increasing non-performing loans presents a challenge for 2026, requiring a balance between deepening financial inclusion and preserving the stability of the system. The BCRA approved the publication of a new rate, the Moratory Interest Rate (TIM), on January 8, 2026, to allow courts to determine interest on late payments.