Costa Rica: Late Payments Growing in Tourism and Real Estate

In January, 2009, 15% of the payments in real estate and tourism loans were late, more than double the amount in August, 2008.

Monday, March 9, 2009

The figures reported by the Superintendent of Financial Institutions indicate that in August of last year, 7% of the payments on loans to the hotel and restaurant sector were late, whereas they were 15% in January of this year.

Where real estate loans are concerned, debtors were current in their payments in August, 2008, but late payments rose to 15% in January, 2009.

According to the report, there was an increase in late payments in all sectors, but the biggest growth was in tourism and real estate.

More on this topic

Rate Hike Worries Banks in Costa Rica

May 2012

A passive base rate in excess of 12% would be problematic, affecting the behavior of borrowers and is likely to cause an increase in defaults.

The Passive Base Rate (PBR) reached 10% on May 9, a level not seen since October 2009. The banks set their interest rate according to the PBR and charge an additional margin.

Loan Payment Defaults Still Rising

August 2011

There have now been seven consecutive months during which the default rate of borrowers from the Banco Nacional de Costa Rica has increased, having exceeded the normal limit of 3% over the past three months.

The increase in defaults is due mainly to problems with real estate projects in Puntarenas and Guanacaste, said Bernardo Alfaro, deputy general manager of the bank’s risk management office.

Panamanians Owe Financing Companies $48 Million

February 2010

50% of all loans granted by financing companies are in a state of default.

This was stated by Alicia Sáenz de Guinard, president of the National Association of Financing Companies. She added that 20% of the debtors are individuals who paid via direct deduction from their salaries.

Mortgage Delinquency Increases by 6.6% in Panama

April 2009

The delinquent mortgage portfolio reached $1.032 billion on January 31, 35% of all delinquencies in the system.

An analysis on mortgages by Equilibrium risk rating revealed that the financial system’s mortgage portfolio amounts to $22.4 billion or about 24.9% of all loans. Where late payments are concerned, mortgages have a much greater weight in the system, reaching 35% of all delinquent loans.

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