Credit to the private sector —which includes loans granted by banks, financial, municipal and rural savings banks, as well as cooperatives— grew 13.1% year-on-year in October this year,
Central Reserve Bank of Peru (BCR) has reported.
Without the disbursements associated with the
Reactiva Peru Program, total credit to the private sector would have registered an annual decline of 3.9%.
It must be noted that the loans —excluding those granted under said program— marked the first increase since the pandemic began last March.
According to the issuing entity, Peruvian Sol-denominated loans grew at an annual rate of 21.6% in October, while U.S. dollar-denominated credits declined 10.3%.
The expansionary monetary policy actions, including Reactiva Peru, have sustained the payment chain in a period of significant economic contraction caused by social isolation measures.
In October, the disbursements under
Reactiva Peru loans made credit record an annual growth rate of 22.9% (in U.S. dollar terms) and 42.9% (in Peruvian Sol terms). Without Reactiva Peru, business credit would have declined 5.2% annually.
The BCR indicated that this program has allowed a greater annual expansion of credit in all business segments in October.
Credit to micro and small-sized enterprises increased 35.5% —the highest interannual growth rate since information is available (2010)— and, without Reactiva Peru, it is estimated that it would have fallen 2.2%; loans to medium-sized companies grew 40.7% (instead of -6.9% without Reactiva Peru); and those aimed at large companies and corporations 10.4% (-5.8% without Reactiva Peru).
(END) NDP/RMB/MVB
Published: 11/28/2020