Guatemala: Dollar Credit Up 18%

Excess dollars due to higher income from remittances and foreign credit lines account for the 18% increase in the loan portfolio in that currency.

Tuesday, July 28, 2015

The reporting period is the year between June 2014 and March this year.

The increase in remittances and credit lines that banks have externally has generated a surplus which the banking system captures and re-enters the market through loans. Of the total portfolio, the segment of consumer loans has registered the highest growth, explained Benjamin Arriaza, director of operations of Banco de los Trabajadores (Bantrab) to Elperiodico.com.gt.

"... Consumer credit is the fastest growing Arriaza noted, explaining that in the case of the credit card segment, users use dollar amounts for foreign travel or to shop online. "

Victor Mancilla, former head of the Superintendency of Banks (SIB), "... said that for users credit in dollars is attractive, because the quetzal has strengthened and interest rates are lower than those for loans credit in the national currency . "It is a decision in favor of the debtors.'"

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