“It can increase consumption” | Business support for extending the purchase limit

Integrating major institutions Shops and SMEs The increase in credit card limits announced by the government on Monday was supported. when Banking sector, along with various mechanisms, advances in scale implementation. Cameras and data from private consulting firms warn The decline in consumption deepened In the first weeks of May.

“We believe this is a move To cooperate with consumption And give more agility. In a way, this complements what was announced days ago with the announcement of better financial conditions for the project 12 now“, pointed out from them Argentine Chamber of Commerce and Services (CAC). “In practical terms, an attractive price is offered first [los consumidores] Buy and, with this [el incremento de los límites]A margin is given so they can buy”, noted company director Natalio Grinman.

Meanwhile, Press Secretary Argentina Confederation of Medium Enterprises (CAM)Salvador Femenia highlighted the role of official banks in consumer offers with credit cards: “It’s positive Increase the purchasing power of the peopleEspecially through National Bank It will certainly take a project in installments without interest, and we are waiting for offers through the DNI account of Banco Provincia”x. For its part, General Commercial Confederation of the Argentine Republic (Cgera) “Any action that uses” insisted Maintain consumption at the levels we have achieved We support and support the national industry so that it is promoted”.

activities and banks

Economy Minister Sergio Massa made an announcement on Monday, aiming to stabilize domestic consumption. Agreement with public and private banks with national capital to increase purchase limits by 30 percent Installment payments with credit cards and 25 percent for one-time operations. Margins for current account advances of MiPymes will also be increased by 25 percent. About Control measures It seeks to improve financing accessible to households and firms but does not change the importance of macroeconomic imbalances that slow consumption.

Los Foreign private banks do not participate In this deal, the participating companies have more customers in their portfolios. The limits of the cards will be “twice in 2020, thrice in 2021 and quarterly in 2022,” said departments of international banks operating in the country. However, they clarified that “declared income, loans taken and compliance history will always be followed while taking the decision.” And they added:Our consumption averages with the cards indicate that they do not exceed 50% of their issued limit, which has a higher volume to add to the costs. In addition, we are cautious when consuming, depending on whether it is true Most of the activities in installments are done in three and six monthsmaximum”.

consumption

The latest Study of consumption of final goods and services Carried out by CAC with data up to April (3.4 percent year-on-year growth). Consumption is likely to decrease from May onwardsThis follows the decline seen since mid-2022 Textiles and footwear are the most affected – Due to higher prices, they point out – it recorded a 10 percent year-on-year drop in April, while entertainment and culture were among the few items with positive variations and higher levels than pre-pandemic levels.

According to counsel Focus market, which operates a barcode reader at 670 points of sale across the country, consumption in supermarkets fell 16.6 percent year-on-year in April and this decline deepened in the first week of May to reach 21.6 percent. This is A Core consumption fell 8.2 percent overall Since the beginning of the year.

Consultant ScienceOn the other hand, it differentiates consumption Shops nearby of hypermarkets (in recent times it has been continuously increasing), pointed out a 21 percent decline Sales at stores near AMBA in April fell 2.4 percent year-on-year in the interior of the country. The most affected items were cleaning and household (down 13.1 percent), hygiene and cosmetics (12.2), food (9.3), perishables (10) and alcoholic beverages (8.5).