Luis Caputo: “People Overreacted at Very High Rates, Thinking Inflation Was Going to Liquidate Debts and that Didn’t Happen”
10 Articles
10 Articles
The Minister of Economy analyzed the banking arrears, the decline in inflation, the exchange rate, the country risk and the economic prospects for the coming months
Caputo: "The over-Indebtedness of People Is Due to False Expectations of Devaluation" - Real Economy
The Minister of Economy, Luis Caputo, pointed out that a sector of the population faces financial difficulties after having been indebted at high rates under the premise that inflation or a devaluation would reduce the real weight of its debts. According to the official, this phenomenon has generated a temporary slowdown in the granting of new credits by the banks. The minister’s diagnosis indicates that many borrowers of personal loans acted ba…
Caputo Attributed the Increase in Late Payments to over-Indebtedness Due to Devaluation Expectations
The Minister of Economy said that many people took credit at high rates trusting that a rise in the dollar or inflation would “liquify” the debts. He assured that this situation created a temporary brake on the granting of loans. Economy Minister Luis Caputo said that a part of the population is experiencing difficulties in dealing with their debts after having been indebted with high rates under the expectation of a devaluation or inflationary …
The Minister of Economy explained that people took up debts waiting for inflation to liquefy them, but that expectation was not fulfilled. The entry Caputo attributed the increase in late payment to erroneous expectations about inflation was first published in #BorderPeriodism.
The holder of the economic portfolio attributed the increase in default credits to the over-indebtedness of the families and defended the role of the banks.The statements came in the middle of a strong growth of the arrears in loans and cards.
Minister Luis Caputo explained why bank defaults grew: he attributed the jump from defaults to massive indebtedness during high inflation and emphasized: “Banks were not used to it and people overreached themselves at very high rates, thinking inflation was going to liquidate debts and that did not happen.” The official linked the rise of defaults with a rollover in the bank portfolio: until before Javier Milei, most of the credit went to the pu…
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