The 5 Argentine banks with the lowest credit card interest rates

Argentina’s government has lowered interest rates on credit card purchases made under its Ahora 12 installment scheme.

As part of Ahora 12, consumers with cards from participating issuers can buy goods at favorable interest rates in 3, 6, 12 or 18 installments.

From June 1 to December 31, users of bank-issued cards will be charged a nominal annual interest rate of 20%, down from 45%.

The move will benefit both consumers and businesses, undersecretary of national commerce Ignacio Werner said in a statement.

“Ahora 12 is a great tool for industry, merchants and consumers,” Werner said. “This reduction in the rate to 20% will have a highly positive impact on the growth of the internal market. And this reduction in the rate is going to allow many merchants to offer interest-free installments, proving another option at the time of making a purchase.”

Ahora 12 is a voluntary program. Between January 2016 and April 2019, goods and services for 352bn pesos (US$7.86bn) were purchased under the initiative, corresponding to 114mn operations.

Just over 262,800 merchants are part of the scheme.

Consumers can use Ahora 12 to buy, for example, washing machines or ordinary consumer goods, but also construction materials. Installment options depend on type of good or service.

Purchase size is unlimited except for motorbikes and eyewear, of 80,000 pesos and 5,000 pesos, respectively, according to information on the government’s Ahora 12 portal.

Meanwhile, interest rates charged by banks for standard credit card purchases differ considerably in Argentina.

The country’s economy is coughing, as high interest rates and inflation, combined with weaker purchasing power, curb loan growth and consumption.

In April, the government announced price controls on certain supermarket products to ease pressure on households.

As credit quality has worsened, banks have shifted their focus away from lending to investing in high-interest government debt.

BANKS WITH THE LOWEST ANNUAL CREDIT CARD INTEREST RATES

The data applies to credit cards that can only be used in Argentina.
Four of the five banks are state-controlled; only Banco San Juan is private.

Banco Cetelem, a consumer loan-focused commercial bank that is part of French financial services giant BNP Paribas, charges the highest rate in Argentina, of 181%.

No. 1

According to central bank data, Banco Provincia de Tierra del Fuego offers the lowest rate among banks, of 48.23%. The lender, however, charges a 1,258-peso issuance fee compared with zero pesos charged by the rest of the field.

No. 2

Banco Rioja charges 55.56%.

No. 3

Banco Provincia del Neuquén charges 57.0%.

No. 4

Banco de San Juan, controlled by local conglomerate Grupo Petersen, charges 70.5%.

No. 5

Nuevo Banco del Chaco charges 73.8%.

Pictured: Galerías Pacifico shopping center in Buenos Aires. (CREDIT: MAISANT Ludovic / hemis.fr / Hemis)