Tuesday , January 26 2021

Although the Central Bank has lowered the reference rate, credit has become more expensive

Data from the November Central Bank Monthly Monetary Account show, "The resulting interest rate on Leliq's offerings tended to decline and at the end of the period was 60.75% per annum, 7.3 percentage points below the value recorded at the end of October", emphasizes the subject.

On the contrary, the interest rates paid on time deposits in pesos are averaged higher by 0.7 percentage points for the most recent time deposits from 33 to 44 days; and 1 point for amounts greater than one million pesos, one month in installments.

The explanation for this behavior against the general trend is the deterioration in the fall in demand for cars during the month, and in particular the savings plans that are offered at zero rate in some direct operations of the plant these days.

Gaps between passive and active and market segments

One of the effects of rising interest rates in the recessive economy is that the total amount of pseoco credit to the private sector declined by 4.6% compared to the previous month, with the drop in all lines of funding.

According to the Central Bank survey, the highest average market rate corresponds to 75.21% pa for prepaid (overdraft) payments; followed by personal 64.47%; over Lelik, who paid 64.06%; and the discount of 63.05% annual documents.

At the other end, the credit lines were a bet of 28.51%; and mortgages 44.93% per annum, below the interest rates that financial institutions pay to customers for term loans.

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