2023-05-01 07:08:31
Operations through credit cards in Argentina registered an increase of 5.2% in March compared to last month with a balance of 2,443,898 million pesos (about 11,000 million dollars), according to the latest report prepared by the consulting firm First Capital Group.
In interannual terms, the growth of said expenses was 81.8%. In both cases, the numbers were far from reaching the inflation levels of the period, consequently showing a drop in the portfolio in real terms.
From FCG they highlighted that despite the increase in the prices of goods that are purchased with a credit card, the financed balances do not grow at the same rate.
“We think that several factors influence this phenomenon: a lower offer of installments by Financial Institutions due to the rise in the cost of funds for them, a self-limitation on the part of consumers to buy in installments due to the higher financing costs, a park of cardholders that tends to shrink due to the increase in credit risk and credit limits that do not grow with the frequency and in the amount necessary to absorb the higher expenses”, explained Guillermo Barbero, partner of FCG.
Regarding the use of credit cards for purchases in dollars, in March they registered an interannual increase of 2.7%, although with an irregular monthly behavior. In March there was a strong contraction of 22.5% compared to the previous month.
“So that the reader has a clear reference to these values and can take a dimension of them, in March 2019 the balance reached 357 million dollars and in March 2018, 586 million dollars, full demonstration of the fall of the use of this product in its foreign currency version over the last few years”, concluded Barbero.
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