Securitization of Consumer Loans

Article by G. Gotlib, M. Skiadaressis and J. Tobias^*

This article provides an overview of securitization in Argentina, and considers the tax treatment thereof.

1. Securitization Overview

Driven by strong economic growth and a resurgence in consumer credit, consumer loans, personal loans and credit cards, the past five years have seen a solid growth in the securitization of consumer loans. Banks, home appliance retail chains and consumer finance companies have used this mechanism for years, hence the prediction that these types of securitizations are to remain as the base of the market. This assumes the expectation that banks will continue focusing on retail lending.

Numerous factors have encouraged the use of this technique, including: