The recovery of credit to the private sector shows a robust dynamic, with significant increases in both types of financing. This trend suggests an overall improvement in economic confidence and a more favorable environment for borrowers in both local and foreign currencies.
In addition, Banco Nación is in the process of transforming into a public limited company, in accordance with the Basic Law, according to a statement from the bank itself.
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The strong one credit recovery In recent months, the stock has been at a very low level: measured at constant prices, the stock is half of what it was six years ago (the last peak before the collapse of activity). However, in August, credit to the private sector continued its solid recovery path. For the first time since the beginning of this positive trend, an increase was observed in both peso-denominated and dollar-denominated loans.
A report by LCG argues that, going forward, the combination of low interest rates and the notion that economic activity has reached a certain level (even if the recovery is slight) will continue to influence the dynamism of bank lending. Low rates arise not only from monetary policy decisions.
The document recalls that, today, the conditions for accessing any of the regulatory exemptions do not require major conditionalities, which would be stimulating the demand for loans, even without a link to the expansion of production. On the side of consumer financing, the low purchasing power of wages and the relatively low level of interest rates will be having an impact, which would remain in the remainder of the year.
Data that shows the recovery
The most recent data, updated in the last few hours by the Central Bank (BCRA) with figures up to the last business day of last month, confirm an upward trend that began between April and May. According to the updated monetary statistics, total financing in pesos increased by $4.09 trillion, going from $33.01 to $37.1 trillion.
This represents a monthly increase of 12.4%, exceeding 8% in real terms. In addition, dollar loans grew by US$489 million (+7.4%), rising from US$6,649 million to US$7,138 million, driven by pre-financing of exports.
This growth reflects that bank credit in foreign currency has almost doubled since the beginning of Javier Milei’s administration, reaching levels not seen in 50 months, since the stock had not exceeded US$7.1 billion since the beginning of July 2020.
mortgage loans housing real estate properties
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As for loans in pesos, the categories that grew the most in August were personal loans (+21.8%) and secured loans (+20.4%). Disbursements related to check discounting also performed well (+16%). However, current account advances were the only category with a decline, decreasing by 4% due to a higher number of cancellations compared to new applications.
One notable fact is the 15.7% increase in mortgage loans, driven by growing competition among more than 20 financial institutions. Some of these institutions are adjusting terms and conditions to better align with demand.
Among the main players in this recovery is Banco Nación, which in the last month granted loans worth the equivalent of US$1.7 billion to companies and families throughout the country. To date, the entity has granted more than US$9 billion in 2024. In addition, Banco Nación is in the process of transforming into a Public Limited Company, in accordance with the Ley Bases, according to a statement from the entity itself.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
