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 Elperiodico.com.gt 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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More on this topic

Panama: Bank Credit Up 5%

March 2019

Up to November 2018, the credit portfolio of banks in the national system totaled $54.626 million, 5% more than in the same month in 2017, and the increase was mainly because of mortgage and personal loans.

The sectors driving this growth are associated with personal banking products, especially in the mortgage (5.4%) and personal loans (8.7%) sectors, as well as public sector financing that increased by 33.9%, informed the Superintendence of Banks of Panama.

Bank Credit is Reduced by 7%

January 2019

Up to November 2018, the gross portfolio of the financial system in Nicaragua totaled $4.716 million, 7% less than in the same month in 2017, partly because of the performance of commercial credit.

From the Central Bank of Nicaragua report:

In November, the financial system's loan portfolio decreased by 6.8 percent year-on-year (3.5% in Oct-18), reaching a gross portfolio of 153,055.5 million Cordobas.

Bank Credit is Declining

October 2018

Although up to July loans granted by Nicaraguan banks totaled $5.047 million, 5% more than in the same month in 2017, since May it has been decreasing month by month.

Credit granted by the financial system increased 5.4% year-on-year in July (8.4% in Jun-18), reaching a gross portfolio of 162,568.2 million of cordobas.

Uncertainty Slows Down Private Credit

September 2018

Explained in part by doubts about the economic future in the short term, in Costa Rica credit granted to companies and individuals went from growing at an annual rate of 8% in January to 4% in June of this year.

According to figures from the Central Bank of Costa Rica, in the first six months of the year credit to the private sector has reported a clear downward trend, since in January the amount registered amounted to $34.072 billion and the increase compared to the same month in 2017 was 7.9%. 

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