The “Simple installment plan” rate is being reduced: how much will it cost to buy in installments starting tomorrow and what items will be added

From this Tuesday Simple board will have an interest rate of 50% nominal annual rate and 4.17% effective monthly rate, which is in line with the recent interest rate reduction. Central Bank of the Argentine Republic (BCRA) on the monetary policy rate.

minister of trade what motivates Pablo Lavigne is working out the details of what the new stage of the consumption stimulation program will be, which runs until May 31 and will be restarted starting in June.

As I expected informationThe official intention is that the financing plan for the acquisition of goods and services will be extended until the end of the year, with new items and the ability to conduct transactions with a larger number of payments.

This comes amid a sharp drop in consumption recorded at the beginning of the year due to a general loss of purchasing power. SME retail sales fell 7.3% year on year in April, with a fall of 18.4% in the first quarter, according to CAME.

This Tuesday the government will announce the new interest rate that will apply to Cuota Simple. The government commented that the nominal annual rate would be 50%, equivalent to an annual effective rate of 63.2% and a monthly rate of 4.17%.

This is because the cost of funding the program is tied to the BCRA base rate. Last week the company decided to cut the rate by 10 points from 60% to 50% of the annual par value, the second in less than fifteen days.

Resolution that launched Cuota Simple, a consumption incentive program that replaced the traditional It’s 12 nowit was intended to be in effect from February 1 to May 31, 2024. The scope is national, available every day of the week in both physical and virtual stores that participate.

It is planned to extend it for at least four months, that is, for about 120 more days. BCRA Trade and Industry officials are working out the details in their communications with companies and businesses.

It is intended that fee simple financing will only allow 3 and 6 installments because they were the most popular among consumers during Now 12. They accounted for 80% of transactions.

In the meantime, the government is working with some areas to see if it can offer 9 and 12 installments in areas such as home appliances, home appliances, motorcycles. These products usually have a high nominal value and the payments are very large if they are made in multiple installments.

Commerce officials told this publication that the inclusion tourism in the program this is until May 7, but it will be included in the new stage, which will begin in June. “It is likely that other items will be added,” they added.

The program already includes: household appliances, clothing, shoes and leather goods, cell phones with 4G technology, furniture, bicycles, motorcycles, educational services, mattresses, books, glasses and contact lenses, goods from bookstores, toys and games for children . Table, Maintenance of electronics and home appliances, Tires, accessories, CNG conversion kits and spare parts for cars and motorcycles, Musical instruments, Computers, laptops and tablets, Lighting, TVs and monitors, Perfumes , Small household appliances. Sports preparation services, Medical equipment, machines and instruments, Cultural shows and events, Durable kitchenware, Automobile and motorcycle repair services, Home connection kits for public water supply and sewerage, and tourism.

SME retail sales fell 7.3% year-on-year in April and were down 18.4% in the first four months of the year. Compared to March, they increased by 1.6%, according to Argentine Confederation of Medium Enterprises (CAME).

The rebound compared to the fall in March (12.6% year-on-year and 3.2% month-on-month) was due to the return of interest-free installment plans in some stores selling primarily household appliances and building materials, which contributed to an improvement in the situation. sales.

However, in April, six out of seven positions recorded a decrease in annual indicators. The largest annual decline was recorded in perfumes (-23.3%), and the only increase was in textiles and clothing (+8.8%).

“Retail continues to experience declining purchasing power from consumers who have cut spending across the board. The only sector that has emerged as a result of this trend is clothing and textiles, which are favored for three reasons: due to the increase in supply; due to a very low comparison base as the industry has been greatly weakened since the pandemic; and because of the slowdown in prices for this particular product,” CAME said.