It is proposed in Costa Rica to reduce by 50% the bank fees on loans for businesses and SMEs, as well as credits for social housing and lower class.
The law project, which was presented to the Congress by the representative, Yorleny Leon, aims to reduce fees in the formalization of bank loans, which currently range between 8% and 10% of total credit.
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%.
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.
Mortgage and personal loans continue to be responsible for much of the 5% increase in domestic credit to the private sector, recorded between June 2017 and the same month in 2018.
According to the latest report by the Superintendency of Banks, in the sixth month of the year the credit portfolio of the private sector totaled $52.311 billion, which is equivalent to an increase of 5.4% compared to the $49.609 billion reported as of June 2017.
The deterioration of the economy and rising unemployment are the main reasons behind the difficulties faced by companies and individuals in Costa Rica in paying back their bank loans.
In Costa Rica, the active participation of the government issuing debt in the local market and the uncertainty over fiscal reform are some of the reasons behind the sharp slowdown in growth of credit to the private sector.
Although awards of loans to the private sector are still growing, they is doing so at a slower pace.According to official figures between January and June of this year, the inter-annual growth rate of the total credit portfolio went from 9.25% to 3.08%, which is equivalent to a drop of six percentage points.
Up to July 2018, credit granted by Guatemalan banks to the private sector totaled $26.06 billion, 4.5% more than was reported in the same month in 2017.
The most recent data from Banco de Guatemala shows that credit to the private sector in the seventh month of 2018 grew by 4.5% compared to the same month in 2017, rising from $24.611 billion to $24.942 billion.This increase was below the increase of 5.3% registered between July 2016 and 2017.
Mortgages and personal loans explained much of the 6% increase in domestic credit to the private sector, recorded between May 2017 and the same month in 2018.
According to the latest report by the Superintendency of Banks, in the fifth month of the year, the private sector's credit portfolio totaled $52.167 billion, which is equivalent to an increase of 5.9% compared to the $49.277 billion reported up to May 2017.
From January to June of this year net profits of banking entities totaled $116 million, registering an increase of 7% with respect to the same period last year.
According to figures from the National Commission of Banks and Insurance (CNBS), the increase in net income registered between the first half of 2017 and the same period this year was 7%, growing from $108 million to $116 million.
In order to try to stop the deceleration in the issue of loans in dollars, authorities in Costa Rica have decided to soften the rules required of banks who grant loans in this currency.
The National Council of Supervision of the Financial System (Conassif) has decided to temporarily reverse the stricter measures that banks must comply with when granting loans in foreign currency to those who generate income in Colones, with the aim of counteracting the deceleration that has been seen in the issue of bank loans.
As of May 2018, the credit portfolio of the financial system in the Dominican Republic totaled $21.147 billion, registering an increase of 12% with respect to the amount reported in the same month in 2017.
According to figures from the Superintendency of Banks, between May 2017 and the same month of this year, the total amount of the loan portfolio increased from $18.957 billion to $21.147 billion.
Due to the crisis affecting Nicaragua, financial institutions have started to record increases in the number of clients that are in default of their loans.
Due to the situation in the country and with the objective of favoring the debtors, the Superintendency of Banks and Other Financial Institutions and the National Microfinance Commission recently approved some temporary rules so that financial entities can modify the original conditions of the loans.
At the end of April of this year, the loan portfolio granted by banks amounted to $12.582 billion, registering a 13% increase compared to the same period last year.
According to figures from the National Commission of Banks and Insurance (CNBS), between the month of April 2017 and the same period in 2018, the loan portfolio grew by $1.433 billion, rising from $11.149 billion to $12.582 billion.
Up to February 2018, the growth rate of bank loans for trade, services, consumption and housing activities decreased considerably compared to the same period last year.
According to figures from the Central Bank of Costa Rica, between February 2017 and the same month of this year, the annual growth rate of credit granted by the financial system to the private sector fell from 13% to 7%.
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O4Bi is a very robust system that allows to control and...
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
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