Irrecoverable Receivables Grow 37% in El Salvador
From January 2008 to January 2009, the banking system’s unrecoverable portfolio grew by 36.9%.
Monday, March 30, 2009
The portfolio with the riskiest loans, known as "E" and classified as "irrecoverable," reached $246 million in January 2009, while $179.7 million were recorded in January 2008, a variation of $66.3 million.
Bad debts are growing and a credit boom is losing steam within the Guatemalan banking system, reflecting the nation's economic problems, according to a report by the regulator, the Bank Superintendent's Office.
El Salvador's banks have had to increase their provision for bad debt by 15.2 percent, according to the latest report from the El Salvador Bankers' Association (ABANSA).
Salvadoran banks want restrictions to be eliminated so that all financial institutions can share and have access to positive or negative credit histories of their customers.
Difficult to recover or irrecoverable loan portfolios are growing, a result of the deterioration of the users’ payment capacity.
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