After the decision by the Central Bank of the Argentine Republic (BCRA) to raise the interest rates of fixed terms, as of September it will also become more expensive to finance the balance of the credit card, which will impact those Argentines who pay in installments or fail to pay the full summary and they pay the minimum for plastic for those who, for the first time in recent years, that cost exceeds 100% per year.
On average, as of today the total financial cost (CFT), an invention of these regions, to refinance the credit card balance will be around 105% per year, that is to say almost twenty points more than just a month ago when it was at 86.8% annual average in the leading banks.
This increase is due to the successive rises in the rates applied by the Central in the last two weeks that jumped from 57% per annum in early July to 71.5% nominal per annum for those expenses of up to $200,000 or US$200. Before, it was at 62%, so it was a jump of 9.5 points.
In recent months there has been a drop in card purchases. Nevertheless, banks have been cutting the limits of the cards, with which many customers have no other alternative than to resort to a personal credit to kick your debt forward.
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