Honduras: Rise in Savings During Confinement

In the scenario of the health crisis and the decreed quarantine, it is reported that as of April, the balance of savings deposits of individuals amounted to $5,283 million, 15% more than the same month in 2019.

Wednesday, June 24, 2020

At the beginning of the year the authorities of the Central Bank of Honduras (BCH) estimated that for this year deposits in the financial system would increase by about 8%, however, this figure has almost doubled.

You may be interested in "Covid-19: Forecast for the Financial Activity"

Regarding this increase in deposits reported in the context of the spread of covid-19 and compliance with the government's house quarantine, Wilfredo Cerrato, president of the BCH, told Laprensa.hn that "... people are not spending, people are saving in the banks'. The increase in the balance of the savings accounts is explained by the confinement to counteract the spread of covid-19."

Gustavo Alfaro, former president of the National Commission of Banks and Insurance, explained that "... there are other factors such as the moratorium on payments of obligations to the financial system and lower household expenses have increased the balances in savings accounts."

These data reinforce the hypothesis of the market studies, which assure that in this scenario of confinement the savings of the families because of the work at home, the decrease in the consumption of gasoline and the fall in the expenses that cause the activities outside the home, have boosted the savings.

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