Consultancy: Lending to grow 10-12% next year

Argentina's financial system should see lending grow at rates of 10-12% next year on the back of the country's long-awaited exit from default status and buoyed by sustained economic growth, Rafael Ber, managing director at local consultancy Argentine Research told BNamericas. This year lending is set to grow at lower rates of 6-7%, because loan activity was slower to recover from the country's financial and economic crisis in late 2001 and 2002 than the banks' deposit business, Ber said. The Argentine government should be able to restructure its massive debt in default during the first half next year and that turning point "will make the banks more confident" and prompt them to be more aggressive in their loan offers, he said. Ber added he is betting on April or May as the month when Argentina can finally exit its default status. The growing strength of the Argentine economy is also another key factor that will help boost lending next year, Ber said. This year the economy is set to grow an impressive 8% as it is still recovering ground lost during the crisis but next year the economy will have entered into a more sustained expansion of 6-7%, which will stimulate both banks and their clients to lend and borrow more, he said.