the rate drops to 49%, there will be no extension or minimum payment

The Central Bank decided not to postpone the expiration dates of credit cards, in the context of the health crisis that the country is undergoing as a consequence of the coronavirus pandemic.

According to know iProfessional, the monetary authority analyzed on Tuesday how the credit card mechanism was going to be and decided to lower the interest rate in the event of not being able to pay it from 55% to 49% and that no penalties are charged on the debt that is generated.

These measures were taken in the context of the government’s concern about the consequences of the mandatory quarantine ordered more than two weeks ago by President Alberto Fernández.

Ten days ago, when the first phase of quarantine was launched, the Central Bank postponed until April 1 the expiration of credit cards and bank loan installments.

The argument was to make life easier for people, whose lives were altered by asking them not to leave their home to avoid exposing themselves to the Covid-19 virus.

Now, he decided not to run the maturities anymore, but to lower interest rates and not be charged penalties on the debts.

Last month, the Central Bank capped 55% a year on the interest rate charged by credit cards. The measure involved a cut of almost 35 basis points with respect to the average level at which they were located up to that moment.

However, the world changed in the last month. What until February was a breakthrough in terms of regulations, is now outdated by the pandemic and the quarantine economic situation.

The Board of the Central Bank will also provide a measure regarding personal loans. Through Communication A6942, the BCRA established that “the maturities of financing of financial entities that are registered between March 20, inclusive, until March 31, 2020, inclusive, will pass to April 1, 2020.”

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