2023-05-23 01:44:06
The Minister of Economy Sergio Massa met this Monday afternoon with businessmen from the banking sector in the Belgrano hall of the Palacio de Hacienda and announced an agreement for financial institutions to raise the ceiling for consumption with credit cards by 30%, as a measure to boost consumption .
After the meeting in which executives from business chambers that group banks and a group of officials participated, the Government will formalize a measure that the Palace of Finance had anticipated in the last hours and that Infobae advanced.
In addition to Massa, the president of the Central Bank Miguel Pesce, the secretary of Commerce Matías Tombolini, the secretary of Industry José Ignacio de Mendiguren, the head of advisers of the Ministry of Economy Leonardo Madcur and the president of Banco Nación Silvina Batakis participated in the meeting. , among others. For their part, the two banking entities present were Adeba, which represents national capital entities, and Abappra, from public banks.
During the meeting, Massa spoke about the impact of the drought on the economy and said that “GDP has to be compensated by investment and consumption and the internal market.” “As you know, this fall was getting worse, it not only affects us in reserves but also in Product. We are convinced that the impact of consumption capacity by improving income and on the other hand with access to credit can help us to offset part of the drop in GDP due to the drought,” the official commented.
“We value the decision of public and private banks with national capital that help to consolidate consumption by increasing the credit indebtedness quota. It is a very valuable contribution from the financial system, that they support this initiative and that they allow us to benefit the consumers of Now 12 and in one payment. And SMEs because when they increase their current account credit capacity, their working capital is improved to sustain employment”, continued the head of the Palacio de Hacienda.
“This effort that we are making from the national public and private Argentine financial system will have a very good impact on credit capacity and will increase consumption. We have to improve people’s access to credit. And we have to look at the compressed debt situation, I understand that it is 10% of those who have a card but that could help a lot in terms of consumption. We can increase the volume of consumption that is low today, it is a good opportunity”, mentioned Massa.
“Argentina has credit restrictions, if we can improve from readjusting a destination for our own financial system that feeds our internal market is important. Just as we sometimes get angry when any decision or measure they take can mean some harm to citizens, this benefits the vast majority of Argentines,” the minister concluded.
What changes for consumption with cards
The announcements include a 30 percent increase in credit card installment purchase limits and 25 percent for payment operations in a single installment. The margins for advances in checking accounts for MSMEs will also increase by 25 percent. Meanwhile, those who pay with a credit card will be able to finance their consumption with a higher limit, both in installments and in cash, the same sources detailed.
These measures will mean an increase in credit available to families and companies, they said in the Ministry of Economy. In the case of families, the benefit will come from having greater access to credit on their credit cards.
According to sources that participated in the meeting, there will be no specific regulation of the Central Bank that forces banks to specify this 30% increase in the consumption ceiling with quotas, but rather it will be part of a commercial policy decision of each entity. . “If a client’s risk profile does not qualify, there will be no increase,” summarized a banker before Infobae’s query after the meeting.
In any case, in the Palacio de Hacienda they estimated that more than 20 million Argentines would have a greater margin on their card to buy 30% more, since for every $10,000 pesos available to buy in one payment, 3,000 more pesos of availability will be added .
In the case of a family that has 50,000 pesos of credit available on their card, they will now have 65,000 pesos, based on the calculations advanced by the sources of the Palacio de Hacienda. This increase will allow families to access more assets with the Now 12 Plan.
To this will be added changes in the regulatory framework in order to promote the channeling of society’s savings towards credit, efficiently and avoiding the generation of distortions, especially those generated by setting minimum rates, which will contribute to improving Financing conditions for companies and individuals. This will also contribute to improving financing conditions for companies and individuals, they added from the Government.
According to data released by Economy, the total debt burden of families is limited, since it represents 10.4% of the wage bill (as of November 2022). Also, the debt with irregular payment is 2.3%, with a maximum level of 4.3% in the second income decile and a minimum of 0.9% in the highest income decile.
In the last 12 months, the five jurisdictions with the greatest participation in the number of debtors with credit cards were Buenos Aires, CABA, Córdoba, Santa Fe and Mendoza, and they account for almost 77% of credit in the financial system instrumented by cards.
These provinces registered an interannual growth of 5.4% in the number of debtors with cards, standing out the cases of Mendoza (+6.9%) and the province of Buenos Aires (+6.4%). Meanwhile, the highest relative growth at the country level occurred in Catamarca (+12.5%); La Rioja (+11.8%); and Misiones (+10.4 percent).
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