The indebtedness stock of Argentine families grew 4.6% in June, pushed by “non-bank” debts, which increased 16.1%, so that almost nine out of ten families ended the month with outstanding payment commitments, according to a report prepared by the Center for Regional and Experimental Economics (CERX).
The total debt of the families reached $ 1,905,119 million and affected 11.9 million households, which is equivalent to 86.5% of the country’s households, some 163,000 fewer households than in May, although the debt for those who could not pay off their liabilities grew by $ 83,415 million.
According to the report, although bank debts fell 1.6% in June to $ 1,168,217 million as a result of the fall in pledge loans (-5.8%) and credit cards (-2%) , non-bank debt increased 16.1% compared to May and reached $ 736,902 million, mainly due to the delay in paying taxes (+ 24%) and services (+ 15.5%).
“The most frequent in June continued to be tax arrears, which accumulated debts of $ 185,040 million, 24% more than in May. Families continued to stop paying taxes such as real estate, patents, and other national and municipal taxes.“indicated the document of the consultant that directs the economist Victoria Giarrizo.
On the other hand, the report indicates that although the debt with “family and friends” grew little (+ 1.4%), the debts with “lenders” did increase very strongly (+ 12.6%), something that worries about its high cost and risk.
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“On average, each family owed $ 159,738 in June, 6% more than in May,” the report said.
Another highlight of June is the increase in household fear of losing income or employment, which for 44.9% of people, is “very high” and that, when the quarantine ends, if the income is recovered, 61.8% of households will use it to pay off liabilities.
“As more activities are released hopefully, families will regularize their non-bank debts. But this process will be very slow and will be combined with increases in the debt stock of those who lost income or employment and are not yet recovering, “CERX analyzed.
In this sense, they pointed out that the burden of family debt will be “one of the great limitations to recover consumption, even when the income begins to gain ground “, since” first debts will be canceled and then there will be consumption “.
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The information collected by CERX arises from the crossing of data from the Central Bank of the Argentine Republic (BCRA) with a survey of 6,770 households between June 22 and 25.
With information from Agencia Télam.-
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