The gap between interest rates on personal loans and fixed-term deposits in Argentina has reached its widest point in 14 years, according to Ambito. The outlet reports that the spread has grown because personal loan rates have not fallen in line with the central bank's policy rate cuts.
Ambito states that the government's push to lower borrowing costs has reached businesses but not households. While corporate lending rates have declined, personal loan rates remain elevated, leaving families paying significantly more to borrow than savers earn on deposits.
The record spread reflects a broader trend in Argentina's banking sector. Reports from La Nación and Capital24 indicate that banks are tightening credit as business loan defaults rise. Small and medium-sized enterprises are struggling with high taxes and selective lending rates, according to epicarosario.com.ar. As banks become more cautious, they are refinancing existing debts rather than issuing new loans, which keeps personal loan rates high.
The key question is whether personal loan rates will eventually follow the downward trend seen in corporate lending, or if the gap will persist as banks manage rising default risks.
