In the context of an economy in crisis, private sector lending does not recover and has gone from stagnation to abrupt. "After growing just 0.3% in November, loans to the private sector in pesos show each of 0,3% for the partial December month"said Joaquín Berro Madero, an economist at the Institute of Studies on Argentine and Latin American Reality (IERAL).
In his analysis, he indicated that the credit lines most affected were those linked to consumption – Personal and Card -, which fell 0.3% in the first case and -1.4% in the second. In its turn, Private deposits in pesos increased from 4.3% in November to 7.3% in December. "With data up to December 17, credit to the private sector in pesos reflects a slight decline month by month," he said.
This phenomenon is verified in all lines, although it is a little more intense in those related to consumption. Thus, the credit market has not been operating since June 2018"In contrast," private sector peso deposits continue to grow at an ever-increasing rate; this month driven by spot positions ".
Partial December data show a decline of -0.3% in peso credit to the private sector, after practically zero growth in November (0.1%). In detail, the most affected financings in December are those linked to consumption in pesos (Personal Cards and Credit Cards), which represent approximately half of the total portfolio in that currency and post-deceleration of -0.8% thereafter. grow only 0.5% in November.
On the one hand, personal loans confirm 0.3% decline in Novemberto -0.3% in the month of December; always in nominal terms, from end to end. While "credit card financing in pesos went from growing 1.3% in November to falling -1.4% in December."
Likewise, "Commercial lines – current account debits, single signature documents, purchased and discounted documents, etc. – which represent approximately 30% of the total peso portfolio, grow only 0.2% in December after hiring. 0.5% in November, having the signal after two consecutive months of setbacks, "said the report's author.