Credit to the Private Sector: Poor Outlook

Managers of Costa Rica's financial institutions predict that due to the health crisis the country is going through, the demand for credit from companies and families will continue to fall in the coming months.

Tuesday, April 21, 2020

Figures from the Central Bank of Costa Rica state that between March 2019 and the same month in 2020, the balance of money lent by public and private banks to companies and families decreased by 2.3%, from $28,559 million to $27,908 million. See full data (in Spanish).

For Allan Calderon, the National Bank's Credit and Risk manager, the outlook is that "... the demand for credit by businesses and families will continue to be weak as a result of the negative effects of the coronavirus on the economy."

You may be interested in "Covid-19: Outlook for the Financial Sector"

Regarding the expected trends, Ariel Rosenblatt, Scotiabank's vice president, explained to that "... the covid-19 stopped all the demand that the entity was reporting in the retail and commercial sector. Companies and families are readjusting to a new reality and, until the new variables are internalized, we will not see growth in demand for credit."

Also see "Changes in Lifestyle and the New Commercial Reality"

According to the interactive report prepared by CentralAmericaData, it is predicted that the impact of the Covid-19 crisis on the financial sector in Central America will be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.

Banking sector and covid-19: How to measure the impact on the various sectors?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months and which opportunities will arise in the context of the new commercial reality.

Click here to request access to this report.

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