Andina

Reactiva Peru loans are more dynamic compared to similar programs in South America

Photo: ANDINA/Melina Mejía

Photo: ANDINA/Melina Mejía

12:01 | Lima, Oct. 27.

The percentage of execution in the granting of Reactiva Peru Program loans is higher than that verified in other countries in South America and Europe, which implemented State-sponsored guarantee programs to counter the impacts of the pandemic on their economies, the Central Reserve Bank (BCR) reported on Tuesday.

According to the issuing entity, State guarantees for loans have reached 7.7% of gross domestic product (GDP) in Peru to date, of which 7.4% of GDP correspond to guarantees under Reactiva Peru.

According to the BCR, this level of execution is higher than in Chile (3.3% of GDP), Brazil (1.4%), and Colombia (0.8%).

This higher execution by Reactiva Peru exceeds that of some European countries such as Spain (7% of GDP), Italy (5%), France (5%), United Kingdom (3%), and Germany (1%), which implemented the largest guarantee programs.

According to the Central Reserve Bank, in some cases this low execution responds to a low demand for these programs due to the requirements demanded to companies that participate in them.

The BCR asserted that —between June 30 and October 20, 2020— it placed S/25.282 billion (about US$7.01 billion) in portfolio repos with the National Government's guarantee in the second phase of Reactiva Peru.

To date, said accumulated amount represents 84% of the program's resources and was assigned an average interest rate of 1.73% for clients of financial entities.


(END) NDP/VLA/JJN/MVB

Published: 10/27/2020