'Indebted to survive': Argentines drown in unpayable loans

Argentina is grappling with a deepening debt crisis, as a tripling of family loan defaults over the past year has pushed delinquency to its highest level in two decades. Under President Javier Milei's ultraliberal government, which took office in December 2023, millions of Argentines are struggling under the weight of unpayable loans.

The crisis stems from a combination of stagnant incomes and a dramatic increase in the cost of living. Utility tariffs, in particular, have surged far beyond inflation rates, crippling household budgets. According to the Central Bank, approximately 5.8 million Argentines are currently more than 90 days behind on their payments, with half of these considered unrecoverable.

Andrea, a 32-year-old mother, exemplifies the struggle. After her employer closed, she attempted to start a home-cooking business. A loan for a new oven ballooned her debt from approximately $670 to $3,360 in just a few months, making it impossible to repay. "I fell behind on payments, and in a couple of months, the debt became unpayable," she told AFP, expressing shame and embarrassment.

Bank delinquency among families has climbed from 4.5% to 12.8% between May 2023 and May 2024. This surge, particularly in personal loans and credit cards, rivals levels not seen since Argentina's 2001 economic collapse. While President Milei has characterized the issue as a "private agreement" and questioned why individuals felt compelled to borrow, Juan Cuattromo, president of the Banco de la Provincia de Buenos Aires, argues that the rising defaults are a direct consequence of a deteriorating macroeconomic environment that has impacted incomes, employment, and economic activity.