Due to the increase in rates, the cost of the credit card summary “kick” becomes more expensive

The “b” side of the rate hike that the Central Bank faced this Thursday will be a new rise in the cost of credit. While from the point of view of savers they lead fixed-term annual returns at 107% can be attractive, for families and companies What they are looking for financing this setting can become Headache.

Unlike other times, where the Central Bank authorized a Leliq rate hike but moderated the impact on credit lines, this time the increase in the reference rate of the economywhich was raised to 75% per annum at the last meeting of the agency’s Board of Directors, yes, it will strongly affect the cost of credit.

A) Yes, the credit card summary payment financing fee rose to nominal 77% per annum, which in actual terms represents a cost of 111% in the year in terms of rates. To calculate the total financial cost of the credit card payment, it is necessary they also include fees and administrative expenses that banks charge.

This new rate adjustment comes at a time when the consumption of plastic is quite affected. Credit card usage fell 1.6% in August compared with rising inflation and this trend is expected to intensify this month.

There are 34 percentage points of difference between the rate the cards will charge this Friday versus the rate charged earlier this year.

The Central Bank has decided “defrost” In January, the rates to fund summaries of up to $ 200,000, set in the order of 43% since 2020, when the coronavirus pandemic began.

The banks had asked for this adjustment and, given the rise in the rest of the prices in the economy, they stopped “updating” the amounts of credit available, so in practice theyreduced purchasing power of many of their customers.

This dynamic will also affect the costs of companies: The rates of the loans for productive investments will be 87.5% in annual effective terms, while to apply for a working capital loan they will have to pay an effective rate of 106.1%.

so far this year, all credit lines are contracted, those aimed at people and also those that finance companies regarding the rise in inflation. Since December 2021, pesos loans have been reduced by 8.5% in relation to rising prices and economists warn that there is no short-term reason for them to rebound.

“A scene from decline in activity, like that expected for the second half of the year, will have a direct correlation on credit dynamics, which will add to this new scenario of interest rate hikes that will eventually depress the demand side. We expect a retraction of the stock and an increase in defaults, “said economists from consultancy LCG.

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