Bank Default Falls at the End of 2018

Between May and September 2018, an increase was reported in the proportion of loans with payment arrears greater than 90 days, but between October and December the trend was downwards.

Monday, March 11, 2019

Data from the General Superintendence of Financial Entities (Sugef) indicate that between September and December 2018, the proportion of loans with payment arrears greater than 90 days, or in judicial collection, decreased from 2.58% to 2.14%.

See "Costa Rica: Crece mora de créditos en dólares"

Hermann Uribe, vice president of Risk at Scotiabank Central America, told that "... The results of the fair were positive. The clients took positively the possibility of negotiating conditions more appropriate to their personal situation."

For the economist and ex-banker, Luis Liberman, this decline is because "... many debtors took advantage of incentives and bonuses to catch up or reduce the default on their loans to avoid jeopardizing their credit rating."

It is important to mention that the change of trend reported during the last quarter of 2018, was registered in the context of an increase in the dollar price, a deceleration of the economy, and other complications derived from the strike of unions of public institutions and the crisis in Nicaragua that had some repercussions in Costa Rica.

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