Juan Carlos de Pablo Defines Delinquency as Investment for Wallets

Economist Juan Carlos de Pablo stated that "the cost of delinquency for wallets is investment" amid a significant increase in delinquency in the financial system. During the program "Machiavelli and Adam Smith," he explained that financial entities grant loans without sufficient information about the borrower, resulting in many low-amount loans, knowing that a percentage will not be repaid. De Pablo compared this strategy to agriculture: "It's like planting 32 twigs and waiting to see which ones grow and which ones don't." The government's stance is one of non-intervention in the credit market, coinciding with the Vice President of the Central Bank (BCRA), Vladimir Werning, who rejected "populist proposals" that threaten access to credit. Werning emphasized that banks have enough capital to absorb losses and do not need external assistance. Credit card operations fell by 10.1% year-on-year, in a context of delinquency close to 13%. In July, 5.9 million people had irregular family debts, equivalent to 28% of Argentines with credit, according to consulting firm 1816.

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