For 2021, some of the financial institutions competing in the Costa Rican market are betting on placing loans for the purchase of homes, consumer loans and business financing.
In Costa Rica, home purchase loans were already showing positive signs at the end of 2020, since in November of last year the amount of the loan portfolio in question reported a 7% year-on-year increase.
The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000.
In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks.
A law was published in the Official Journal establishing a moratorium on loans granted by banks, cooperatives and finance companies, both public and private, until December 31, 2020, for natural and legal persons affected by the pandemic.
The law promulgated on July 1 in the Official Journal, states that the benefits of the moratorium will be available to persons whose employment contract has been suspended or terminated, independent workers and traders whose activity has been affected by the health measures applied by covid-19.
Legal or natural persons who apply for the moratorium on loan payments in Panama must prove to the banking institutions that they have been economically affected by the outbreak of covid-19 and that they cannot cancel their quotas.
In order to help cooperatives, cope with the emergency caused by the spread of covid-19, the National Institute for Cooperative Development agreed to reduce the interest rate on loans.
This decision was taken to support the cooperative sector, especially the agricultural sector, which has been suffering from a variety of effects. The authorities also hope to make a significant contribution to the country, in the context of the current epidemiological situation, reported the National Institute for Cooperative Development (INFOCOOP).
Between December 2017 and March of this year, the number of active credits in the country fell 21%, mainly because of the fall in commercial loans and cards.
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.
Consistent with the behavior of recent years, up to October 2018 the number of credit cards circulating in Costa Rica totaled 2.98 million, 14% more than in the same month of 2017.
From the report of the Ministry of Economy, Industry and Commerce (MEIC):
Up to December 2018, the gross portfolio of the financial system in Nicaragua totaled $4.464 million, 9% less than in the same month in 2017, partly because of the performance of commercial and personal credit.
Financial institutions operating in the Honduran market reported the issuance of $1.313 million in new loans during 2018, 21% more than the $1.081 million recorded in 2017.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards. According to the initiative, this task would be in charge of the Central Bank and the Commission to Promote Competition.
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.
Consistent with the trend of recent months, mortgage and personal loans again represented most of the 5% increase in credit to the private sector up to November 2018.
According to the latest report of the Superintendence of Banks, in November last year the portfolio of loans granted to the private sector totaled $54.626 million, which is equivalent to an increase of 5.3% over the $51.873 million reported in November 2017.
At the end of September of this year, the gross portfolio of the country's commercial sector reached $1.703 million, which is 2.1% lower than that reported in the same month of 2017.
Central Bank of Nicaragua (BCN) reported that, at the end of September of this year, the country's gross banking portfolio reached $4,891 million, 0.3% less than that reported in the same month of 2017.
Mortgage and personal loans continue to determine a significant part of the 5% increase in domestic credit to the private sector, recorded between July 2017 and the same month in 2018.
More recent data from the Superintendence of Banks, up to the seventh month of the year the credit portfolio of the private sector reached $52,607 million, which is equivalent to an increase of 5.4% with respect to the $49,921 million reported up to July 2017.
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