Also Loans through the account overdraft modality fell 8% compared to the previous month to $59,695 million, measured in constant currency, the same as the check discount, which fell 4% in the same comparison up to $144,968 million. In the year-on-year comparison, both still show growth of 8% and 11%, respectively.
The decline in the volume of bank loans coexists in turn with an increase in rates that are slightly below annual inflation. While some analysts already speak of an annual rate of the IPC of 100%, the interest on loans is 64.8% annual nominal, which marks a effective rate of 88%, for current account overdrafts. The nominal rate in this case registered a rise of 20 percentage points since August 2021.
In the case of single signature loans, the nominal rate rose 22.5 points to 58.3% nominal, equivalent to 68.3%, while the check discount rate grew 23.6 points to 53.2 %, equivalent to an effective annual rate of 68.3%.
The report indicates that “During August, the ratio of loans in pesos to the private sector over GDP would have been around 6.8%, remaining without great variations with respect to the one registered in the last year”.
“The Financing Line for Productive Investment (LFIP) continued to be the main tool used to channel productive credit to MSMEs”, indicates ADIMRA. From BCRA communication A 7605 of September 15, it was determined that the interest rates of this special line be established at 64.5% TNA for productive investment and 74.5% TNA for working capital. In the working capital segment, the effective rate exceeds year-on-year inflation and expected inflation (REM).
Vicente Donato, executive director of the SME Observatory Foundation, explained to Ámbito that the ADMIRA report would be marking the incidence of the Central Bank’s rate hike, in the demand for financing by companies. “You have to take into account that only 30% of companies can have access to the formal credit market,” said Donato. The economist considers that the increase in the rate does not affect the levels of economic activity in Argentina due to the low level of indebtedness of the companies, unlike what can happen in nations such as the United States. Meanwhile, he indicated that “With the uncertainty that exists, even with negative interest rates, companies prefer not to demand financing”.
An impact of uncertainty is also registered in the capital market. The report indicates that in August 168 Electronic Credit Invoices in pesos and 22 in dollars, for a total amount of $362,846,636 and US$643,970, respectively, which indicates a drop in its traded volume of 64% in pesos and a rise of 21% in dollars.
Source: Ambito
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