2024-04-09 20:28:00
“We see a gigantic opportunity for Argentina in terms of credit growth”he claimed Fabian KonCEO of Banco Galicia, which is in the news this Tuesday for the acquisition of the Argentine subsidiary of HSBC with the payment of US$ 550 million.
“Credit can have explosive growth in the coming months and years, once the government’s current macroeconomic policy is consolidated, which has to consolidate fiscal balance, unify the exchange rate, and eliminate distortionary taxes. We see that the path is the right one,” Kon said in an interview with Bloomberg Linea.
According to the CEO of Galicia, ““Credit in Argentina today is at the lowest levels in history”. And he added: “There is practically no long-term credit for an individual to buy a home or a car, for an entrepreneur to develop a business, to import a machine or to pre-finance exports for small, medium and large companies, financing examples. There may be an explosion of credit.”
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According to the Report on Banks of the Central Bank of the Argentine Republic, the real balance of credit in pesos to the private sector was reduced in January 2024, “with losses in all groups of financial institutions and in most financing lines.
Credit in decline
In interannual terms, the real balance of financing in pesos to the private sector accumulated drop of 30.1%. In the first month of the year, the balance of loans to the private sector in foreign currency increased, partially tempering the performance of the segment in pesos, the monetary authority’s report indicated.
“Today we are the largest private bank in Argentina“We are always first or second with Santander, depending on how you measure it, and with this we are going to be the largest bank in Argentina,” said Kon regarding the acquisition of the local HSBC subsidiary.
What will happen to HSBC clients
As for what will happen to HSBC clients, Kon stated that they will maintain your accounts and your cards.
The difference is that it will operate under the Galicia brand, “but you will continue seeing the same products you had in the same conditions. Obviously the challenge is to improve that, for that we have to develop a value proposition.”
Kon clarifies that the transaction will be valid once it is approved by the Central Bank. “There is a merger of the banks and an integration, with which We are still many months away from a change in the operation, With which I also want to bring peace of mind to clients that as of today nothing changes, and that we will continue, in the coming months, with plans moving forward.”
LM / Give
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