Following a decline of 11.46 points in wages, several Argentine banks have acknowledged that credit card purchase limits have not been updated in line with inflation. The rise in crime rates is worrying.
Together with inflation of 47.6% and economic recession, credit cardAs the banking industry has not updated the limit group for a long time, they acknowledge that they have not updated the values equaling inflation. The reason: the fear that the rate of overdue payables will continue to rise, which has already increased by an average of 2% in December last year. The sources that were consulted by the medium-term agency are nine commercial banks that have recognized this problem in the financial sector.
"In 2018, the rate of overdue payments is rising steadily. And although it is still at low levels, it is a problem for the financial sector. It is monitored every month, "explains the credit expert of a European capital bank. In turn, the manager of the commercial banking of a public company added: "Last year, we registered a huge deterioration in the default ratio. The index varies between 3.2% and 5% of the portfolio of each enterprise in the sector. This is a 50% progressive increase compared to 2015. It has increased a lot, but it is still reasonable.
Analyst Guillermo Barbero, a partner at First Capital Group, explained that businesses do not change purchasing restrictions in times of crisis as a precautionary measure. According to the banking sector statistics, the average purchase limit for a credit card The international standard is today $ 30,000 for hired users who earn between $ 11,000 and $ 30,000 per month. In addition to lowering the purchase limit, the credit quality of customers has also deteriorated.
Some alternatives, which are still viable to get out of step, are the request for a transient increase, ie. to expand the level of consumption in an exceptional way. This is especially recommended for those traveling abroad. Another alternative is to divide the payment of the same consumption and to allocate the weight of the purchase between two different cards.