ARGENTINA

On January 6, the Central Bank announced that it would maintain the maximum 43% interest rate charged on unpaid credit card balances of up to $200,000. It added that for outstanding amounts greater to this, financial  entities may apply “differential rates up to the maximum allowed by the Credit Card Law,” which could be as much as 325% more than the rate charged for personal loans, similar to those applied to non banking cards.

The BCRA also indicated that 95.5% of the credit cards in circulation are financed for lower amounts than the ceiling established, and would thus be eligible for the maximum 43% interest rate. It also said that 4.5% of the cards in circulation have balances of over $200,000 meaning that banks would thus be able to apply the differential rates only to the balance in excess of the limits established.