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More expensive: How much will be the minimum on the card – Nationals | NewsNQN

More expensive: How much will be the minimum on the card – Nationals | NewsNQN

More expensive: How much will be the minimum on the card

“Puf, very uphill to put commercially; CFOs will be back in fashion,” warns the CEO of one of the most important financial companies in Argentina, who is already calculating how much more expensive loans need to be obtained given the increase in funding costs at 69.5% per year established by the BCRA.

COST OF FINANCING

At Central, they state that the cost of funding is 61%, that it is controlled by deposits of more than $10 million, and that they will monitor increases in the effective interest rates applied by the banks.

The truth is that the total capital cost of a private loan, in the first line of banks, will now amount to almost 200% per year. In other words, it will be paid three times more after 12 months.

At the same time, regulated turnover rates, which is what is called the minimum card payment in jargon, go from 62 to 71.5% of the nominal rate, with the total cost of capital going to almost 100 percent.

PAYMENT CHAIN

As a result, the payment chain tightens, as with such high interest rates, it is convenient for companies to put their pesos to work rather than pay their suppliers on time. And since the supplier does not collect on time, he will also not be able to pay on time, so the products will be more expensive, as the effect of the increase in the financing rate has to be added.

On the other hand, in the financial environment, they are already predicting stagnation in lending, especially in the commercial sector. “The workforce had been growing well before this crisis,” they say.

RIDING TIRED

“Rising interest rates greatly reduces our demand for credit. Consider that now we are sending a third of every other month,” admit bankers.

The truth is that the total capital cost of a private loan, in the first line of banks, will now amount to almost 200% per year. In other words, it will be paid three times more after 12 months.

According to the BCRA, interest rates on personal loans rose from 63.5% to 71.6% between July 5 and August 5, the latest date on the Central website, while current account advances rose from 44.4% to 56% over the same period .

According to Banco Nación, its general securities portfolio already has a TNA of 68%, resulting in a 93% effective annual rate, while previously requested current account overdraft rates rose to 64% of TNA and 87% of TEA, while the total cost of capital for checking account advances that not previously requested went to 143 percent.

The bankers, for their part, are desperate for Matías Tombolini to be appointed head of the Ministry of Internal Trade, because it is he who will take care of Now 12, to request an update of interest rates, today at 42. %, when they have funding costs of 69.5 percent.


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