Loan Portfolio: Growth Slows Down

In June 2020, in the context of confinement and the economic crisis, bank credit to the private sector reported an 8% year-on-year increase, but as of July growth began to slow and in September the increase was 5.7%.

Thursday, October 15, 2020

According to figures from the Bank of Guatemala, total credit to the private sector began 2020 with a 5.7% year-on-year increase. As of March, when the first cases of covid-19 began to be detected and the government decreed restrictions on mobility, the growth of the credit portfolio accelerated, with a variation of 8% being reported during the third month of the year.

See "Financial Services: Business Potential in Central America"

Between March and June, the increases remained close to 8%, but in July growth began to slow down with a 7% variation. In August and September, the increases were 7% and 6%.

Fernando Spross, a researcher from the Foundation for the Development of Guatemala (Fundesa), told that "... bank credit has been placed at the level prior to the crisis generated by the pandemic. Business credit is the one that was growing at the highest rates."

Juan Carlos Zapata, executive director of Fundesa, explained that "... the country has a low level of gross capital formation, so for the next year a greater dynamism in investments is expected."

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