Central Bank of Argentina Vice President Vladimir Werning reviewed the recovery in private credit and described the delinquency cycle as reaching its end in a presentation at Torcuato Di Tella University on Oct. 26, 2026. His assessment linked monetary stability to credit growth while identifying the fiscal burden on lending as a contributor to arrears. The analysis traced interest rate dynamics around an electoral shock to expectations of higher consumer prices and a higher nominal exchange rate, with uneven declines in interest rates aggravating the delinquency cycle. Provincial and municipal fiscal policies were presented as having a greater impact on lending rates than central bank monetary policy, making them an important consideration in reducing arrears more quickly. The policy discussion cautioned against using public resources to reduce existing delinquency at the cost of encouraging future defaults through moral hazard. It instead highlighted measures the central bank has implemented or is pursuing to improve credit supply, quality and cost without creating those incentives.
Central Bank of Argentina vice president assesses credit recovery and the end of the delinquency cycle
In a university presentation, Central Bank of Argentina Vice President Vladimir Werning assessed a recovery in private lending and an end to its delinquency cycle. He emphasized monetary stability’s contribution to credit growth and argued that provincial and municipal fiscal policies have a greater effect on lending rates than central bank monetary policy. The discussion favored improving credit conditions without public interventions that reduce current arrears while encouraging future defaults.