THE ARGENTINE CENTRAL BANK INCREASES INTEREST RATE APPLICABLE TO PURCHASES WITH CREDIT CARDS

On July 28, 2022, the Argentine Central Bank issued Communiqués “A” 7559 and “A” 7561, which increased the interest rate applicable by banking credit card issuers to cardholders (when the latter decide to pay the minimum payment of their statements and finance the remaining balance). In particular, the new regulation provided that:

1. the maximum annual nominal rate applicable when the amounts financed do not exceed AR$ 200,000 was increased from 57% to 62%; and

2. such threshold of 62% will not apply to the financing of purchases in foreign currency exceeding US$ 200, even when the financed amounts are lower than AR$ 200,000. In this case, only the threshold set forth in Article 16 of the Credit Cards Law No. 25,065 will be applicable, i.e. 25% of the rate applied by the issuer to personal loans in current currency for customers (such rate currently averages 83% per annum).

Should you need further information, do not hesitate to contact María Victoria Funes, Fermín Caride and/or Lucía Carro.