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%.
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.
In the countries of the region, more than 8 million people are looking for credit on the Internet. Of this group of consumers, approximately 9% explore options for taking out a student loan.
The interactive information system developed by CentralAmericaData monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
At the end of 2019 in Guatemala, the loan portfolio granted to the private sector grew by 5% compared to December 2020; however, this increase was far from the 8.5% predicted at the beginning of last year.
Official figures from the Bank of Guatemala (Banguat) indicate that between December 2018 and the same month in 2019, the private sector loan portfolio increased from $26,262 million to $27,640 million.
At the end of June in Guatemala, credit to the private sector registered a 7% year-on-year growth, which is explained by the upturn in mortgage and consumer loans.
Figures published by representatives of the Banco de Guatemala specify that at the end of the first semester of the year, the total credit to the private sector reached $26.571 million, amount that is 6.9% higher than that reported a year ago.
The rise in microcredits, consumer loans and the construction sector contributed to the 7% year-on-year increase reported in April 2019.
Data from the Bank of Guatemala show that between April 2018 and the same month of 2019, credit to the private sector in the country increased from $24.687 million to $26.534 million, which is equivalent to a 7.4% increase.
At the end of last year, the credit portfolio destined for consumption through cards in Guatemala totaled $1.464 million, 12% more than the figure reported at the end of 2017.
Data from the Superintendence of Banks (SIB) specify that in 2018 loans with credit cards represented 6% of the overall portfolio, which totaled $23.782 million.
Regarding the behavior of credit at a general level, Elperiodico.com.gt reports that "...
After 14 appeals filed, the Guatemalan Constitutional Court declared unconstitutional the law that attempted to regulate the credit card market in the country.
The Credit Card Law became effective on March 8th, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), it was provisionally suspended on March 31st of the same year.
Between November of this year and the same month of 2017, the portfolio of loans granted by Guatemalan banks to the private sector increased 6%, which is caused by the behavior of loans in dollars.
According to figures from the Bank of Guatemala, between November 2017 and the same month in 2018, total credit to the private sector increased from $24.338 million to $25.877 million.
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.
Up to May 2018, credit granted by Guatemalan banks to the private sector totaled $25.725 billion, 4% more than was reported in the same month in 2017.
According to figures from Banco de Guatemala, credit to the private sector up to May 2018 grew by 4.1% compared to the same month in 2017, rising from $24.611 billion to $25.725 billion.This increase was below the 8% increase recorded between the same months of 2016 and 2017.
In an environment with a complex investment climate, between 2016 and 2017, credit to the private sector in Guatemala grew by 4%, less than the 6% registered between 2015 and 2016.
Authorities at the Bank of Guatemala (Banguat) reported that the recent judicial decisions on mining and hydroelectric projects have become the main factors that explain the environment of uncertainty that is affecting the country.
The decrease in the granting of credits to the business sector has been attributed to legal uncertainty caused by the case of the hydroelectric stations Oxec I and II.
Datafrom the Bank of Guatemala indicates that as of April 27, the balance of credit granted by the banking system to the private sector amounted to $24 billion, 5.6% more than in the same period in the previous year, but only 0.4% more than in December of last year. In the case of OffShore entities, the figures indicate that loans granted by these institutions up to April 20 totalled $1860 million, recording a year-on-year change of -1.5% and -4.2% compared to December 2016.
The new law prohibits banks and financial institutions from implementing abusive practices in order to manage debt collection.
From a statement issued by the Congress of Guatemala:
With 108 votes in favor, Congress deputies approved amendments to the Banking Act, with which it prohibited harassment and abusive collection practices on the part of the lenders.
Compared with other economies, the indicator measuring non-payment in the banking system is relatively small, with marked fluctuations in different sectors.
An article on Prensalibre.com reports that according to the Superintendency of Banks (SIB), the indicator for defaults in the Guatemalan banking system "went from 1.55% in May last year to 1.43% in the same month this year."
For the last four years the loan portfolio of the Salvadoran financial system has been growing at an average rate of 3.5%, below the 11% growth average in the rest of the region.
A report produced by the rating agency Moody's notes that growth in El Salvador's financial sector has been stagnant since 2010, as the total loan portfolio has not achieved growth rates above 3.5% per year.