American Express sees Argentine spending up 10 pct

BUENOS AIRES Nov 26 (Reuters) - Credit card spending in Argentina is expected to increase at least 10 percent next year as consumer activity rebounds in Latin America's No. 3 economy, American Express Co (AXP.N) said on Thursday.

"We'll have near double-digit growth," Jose Maria Zas, the company's president for Latin America and the Caribbean, told Reuters. "It's going to be a better year."

The credit card company said the bad loans rate in Argentina is stabilizing at about 4 percent despite the sharp economic slowdown that began in late 2008.

"The rate rose a bit (in Argentina) this year as a result of the global slowdown but it's stable and within normal levels," Zas said, adding that the default rate in the United States was running at about 10 percent.

He said the slowdown was having a limited impact on Argentina, but that global sales had fallen by 15 percent on average. (Reporting by Juliana Castilla; Translating by Vivianne Rodrigues; Editing by John Picinich) ((buenosaires.newsroom@reuters.com; +54 11 4318 0654))