With these modifications, banks will be able to streamline operations and, in turn, will receive automatic and permanent information on monthly accreditations, withdrawals, account balances, term deposits and card consumption.
The rise in interest rates announced by the Central Bank of the Argentine Republic (BCRA) will have an impact on the cost of financing through credit cards. It is that the top annual nominal rate (TNA) went from 43% to 49% since last January 6. The BCRA raised interest rates for Leliq (Liquidity Letters) and fixed terms, which also forced the TNA of credit cards to move. As 49% is the maximum TNA that entities can apply, it remains in these if they apply a lower interest to their clients.
Credit card operations registered a balance of $1,404,116 million, which means an increase of 4.5% compared to the end of last month, some $60,082 million above March but below expected inflation. The year-on-year growth reached 43.8%, neither did it reach the inflation levels of the period. “The increase in inflation rates motivates a sector of consumers to advance their purchases, especially using “interest-free” installment offers, trying to win the “race” to price increases, for this reason we will see greater dynamism in the item in these months. It is also important that the rate authorized by the BCRA for these operations remains in line with the increase in the cost of money for Financial Institutions, so that they maintain financing offers”, assured Guillermo Barbero, partner of First Capital Group .
Regarding consumption in dollars with a credit card, recorded a year-on-year increase of 178.7%. In April there was an increase of 12.2% compared to the previous month. The reactivation of trips abroad, and some occasional benefits granted by differential exchange rates to cancel consumption with cards, have increased the balances of the last month.
Source: Ambito
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