Andina

Central Bank: Reactiva Peru helped prevent drop in business loans in July 2020

17:12 | Lima, Aug. 31.

The Central Reserve Bank of Peru (BCR) on Monday affirmed that —without the Reactiva Peru Program— monthly loans to all types of businesses would have fallen by as much as 1.3% in July, compared to the previous month.

Likewise, it noted that its implementation prevented downturns and allowed total loans (to companies and individuals) to increase 1.4% in monthly terms.

The BCR reported that medium-sized companies, as well as micro and small-sized enterprises (MSEs), would have been the most affected segments if the program had not been implemented, since loans to such businesses would have dropped 2% and 1.5%, respectively.

However, thanks to this program, loans to medium-sized companies and MSEs grew 6.3% and 6.5%, respectively.

"Reactiva Peru has made loans available to all economic sectors and, in most cases, they have witnessed a double-digit growth of up to 56% in the case of social services," the issuing entity stated.

Finally, the Central Bank stressed that loans increased at an annual rate of 22.6% in July, but if the program had not been implemented, loans would have risen only 3.5%, which implies that thousands of companies would have run out of liquidity.

As is known, Reactiva Peru enables the economic system to remain operational by preventing the payment chain from breaking, in the face of the global coronavirus (COVID-19) pandemic.

(END) NDP/MDV/RMB/MVB

Published: 8/31/2020