ABAPPRA Requests BCRA to Ease Refinancing Due to Increased Delinquency

ABAPPRA presented proposals to the BCRA to facilitate refinancing in light of the rise in credit irregularities. The initiative aims to contain the deterioration of the credit portfolio and preserve access to financing. ABAPPRA proposed regulatory mechanisms to ease the classification of debtors and the accounting record of overdue balances, which would allow banks to improve refinancing conditions for clients facing payment difficulties. The association emphasized that these tools have been used during periods of systemic stress with positive results. It also requested progress towards homogeneous criteria for assessing payment capacity and transparency in information. The goal is to detect financial difficulties early and offer refinancing alternatives before clients fall into serious default. ABAPPRA clarified that the proposal does not seek to overlook credit risks but rather to establish a preventive framework to distinguish between temporary issues and persistent insolvencies. Additionally, they offered to form technical working groups with national authorities to analyze the implementation of the measures.

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