Guatemala: Slow Growth in Credit to the Private Sector

For this year, growth in banking credit to the private sector is projected at between 6% and 9%, but the year-on-year increase registered up to March was only 4%.

Wednesday, April 25, 2018

Figures from Banco de Guatemala show that during the year 2017 credit to the private sector grew at a monthly average of 5.17%, and the lowest increases were reported in November and December when the amount increased compared to the same months of 2016 by 4.9% and 3.8% respectively.

In relation to expectations of growth by the banking sector, the vice president of Banco G & T Continental, Federico Linares, explained to Elperiodico.com.gt that " ... estimates, according to the behavior of the credit during the first quarter, are that this year there will be a growth rate of between five and seven percent. "

Regarding the behavior of credit, Linares added that " ... in the banking system there is sufficient liquidity both in national currency and in dollars, so this behavior is due more to the type of demand." 

See figures from the Banco de Guatemala. 

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More on this topic

Panama: Private Sector Credit Continues to Rise

September 2018

In the eighth month of 2018, credit granted by Guatemalan banks to the private sector totaled $26,168 million, 5% more than was reported between January and August of 2017.

The latest figures from Banco de Guatemala show that credit to the private sector in the eighth month of 2018 grew by 4.8% with respect to the same month in 2017, rising from $24.970 million to $26.168 million. This increase was below the increase of 5.1% registered between August 2016 and 2017. 

El Salvador: Business Credit Up 5% in 2017

January 2018

As of December 2017, the balance of the loan portfolio for private companies amounted to $5.926 billion, 5% more than in the same month in 2016.

According to figures from the Superintendency of the Financial System, the balance of loans for companies grew by $306 million, increasing from $5.620 billion in December 2016 to $5.926 billion in the last month of 2017.

Costa Rica: Business Credit Falls

July 2015

The drop from 20% to 6% in the annual growth rate of bank lending to companies as of June, illustrates the direct link between confidence in the future and demand for business loans.

Cathay Bank estimates that slower growth in bank loans for business activities is due to the uncertainty regarding the near future of the economy.

Costa Rica: Bank Lending Slows

August 2014

The scare liquidity of colones explains the lower growth of loans in this currency, while credit growth in dollars continues to lose strength.

Added to the diminished liquidity in colones putting downward pressure on credit growth in that currency, is uncertainty at enterprise-level over recent changes in the exchange rate and lower credit demand for real estate projects, power generation and tourism, as explained by bankers to Nacion.com.

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