Argentina debt delinquency hits two-decade high under Milei

Debt delinquency among Argentine families has tripled in a year and reached its highest level in two decades under President Javier Milei, with 5.8 million people more than 90 days behind on payments, according to the Central Bank of Argentina.

The Central Bank says about 21 million people in Argentina, out of a population of 46 million, have some type of debt. Many households are facing stagnant incomes and high living costs after subsidy cuts for transportation, gas, medicine and other essentials.

Milei has rejected responsibility for people taking out loans. In a recent interview, he asked: “Did they have a gun to their head to make them do it?”

Juan Cuattromo, president of Buenos Aires’ Banco Provincia, said debt delinquency was “not a consequence of individual decisions” but the result of “a macroeconomic context that has worsened incomes, employment and economic activity.”

Personal loans and credit cards account for more than 70% of unpaid loans, according to a report by the Center for Argentine Political Economy.

The rise in debt has coincided with easier access to credit through digital wallets and gig-economy platforms. Gabriel Solano, leader of the Workers’ Party, filed a criminal complaint last week against Marcos Galperin, CEO of Mercado Libre, for usury. Solano wrote on X that the total effective financial cost of a Mercado Pago loan stands at 1,375%.

Delivery driver and union representative Leandro Hidalgo said some gig-economy workers risk having platform accounts blocked if they do not pay loans linked to their work. He accused the platforms of “financial slavery.” Pedidos Ya and Gurpi did not respond to requests for comment.