We envisaged that
a parent company with the funding capabilities of
AIG Consumer Finance Group, Inc and local management expertise
as available at Compañía
Financiera Argentina could implement lending strategies that
would facilitate consumer acceptance, and generate consumer loyalty
substantially reducing marketing, distribution, and collection
costs, enhancing return and reducing risk.
The Argentine market
for consumer lending could be described as underdeveloped with
high growth potential. The total population of Argentina is of
about 36 million inhabitants, of which 15 million dwell in urban
areas. Of these, 7 million live in the city of Buenos Aires and
its surroundings. The low state of indebtedness of Argentine families
suggests that consumption credit will be the retail segment's
star during the coming years. Consumer credit (such as motorcar
liens) and credit cards will concentrate most part of the activity.
Credit cards' participation in the economy is low - around 0.3%
(GDP) - when compared to developed countries like the US. where
it amounts to three percent. The total consumer lending potential
market for consumer lending could be reasonably calculated in
no less than $5 billion. The market is barely covered at 10% of
its present demand.
press release can be seen here.
Francés press release
is included as well.
|DC&G Investments, S.A. -
Av. A. Moreau de Justo 1150
Of. B204, Dock 8, Puerto Madero - C1107AAX Buenos Aires,
Tel: (5411) 4343-3133 Fax: (5411) 4343-3366