Credit cards: from June it will be cheaper to finance outstanding balances

Credit cards: from June it will be cheaper to finance outstanding balances

Careful not to generate a greater problem in income, the central bank This Monday, in addition to a rate increase for fixed terms, it ordered a two-point reduction in the rate for financing unpaid credit card balances.

According to the official statement, The reduction will be from June and will go from the current 88% to 86% TNA. At the same time, it sought to prevent the cost of financing from increasing further for SMEs and decided to maintain the condition of subsidized lines where the rate for investment projects will be located at 76% and for Working Capital at 88% TNA.

This rate does not apply to credits already taken and that are being paid regularly with rates or installments already defined, but rather on the balances that remain unpaid on the total of the account statement.

The operations through the Credit cards they registered a 6.7% increase in April compared to March, marking a value close to the inflation. In year-on-year terms, growth was 85.7%, below the estimated inflation levels, which is why it represented a drop in real terms, according to a First Capital Group study (FCG).

In April, operations for $2,606,987 million were registeredwhich means a nominal 6.7% increase compared to the end of last month, some $163,089 million above March and very similar to the expected inflation values ​​for this period.

While, year-on-year growth reached 85.7%by below inflation levels estimated for the year, with a drop in the portfolio in real terms suggesting a “difficult situation that may affect the future of the credit card market,” the FCG report said.

“If we limit ourselves to the analysis of the variation of the last month, we observe a portfolio stability in real terms, although the factors that limit growth have not changed, such as the rise in the cost of financing, the lower offer of installments, the limitations in family budgets, the decrease in the number of cardholders and prudence in the face of risk on the part of financial entities; the credit limits they begin to be updated gradually as the year goes by, although not in a massive“, explained william barberpartner of FCG.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts