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Stock photo: Unsplash
The Context
Argentine household arrears at 17.5% describe a consumer base running on credit it cannot service. With the government declining to intervene, the adjustment lands on lenders and on any company selling to Argentine households on installment terms.
The Takeaway
- Household arrears at 17.5% mean Argentine consumer demand is borrowed rather than earned.
- Stress-test installment revenue in Argentina against a further rise in household arrears.
- Expect no policy cushion, because the government has already ruled out intervening.
Source: En