Andina

Peru: Credit to private sector up 13.3% annually in June, supported by Reactiva Peru

01:05 | Lima, Jul. 23.

Credit to the private sector —which includes loans granted by banks, financial, municipal and rural savings banks, as well as cooperatives— grew 13.3% year-on-year in June 2020, supported by the Reactiva Peru Program, the Central Reserve Bank of Peru (BCR) has reported.

The issuing entity remarked that June's result is the second consecutive two-digit growth rate of loans to the private sector this year, following a 13.7% rise in May.

In addition, the Central Bank reported that, excluding the effect of this program, credit to the private sector would have experienced a sharp slowdown in its annual rate of 4.4% in June.

It also stated that Reactiva Peru continued to grow in June with new loans worth S/6.2 billion (around US$1.76 billion).

As a result, loans to companies grew 20.1% in June, the highest annual growth rate since February 2012. Without Reactiva Peru, said loans would have slowed down to 5.5% annually.

Moreover, the BCR highlighted that Reactiva Peru helped expand credit to all business sectors.

Finally, the bank explained that credit to micro and small-sized enterprises (MSEs) grew 13.9% last June (it would have decreased by 0.8% without Reactiva Peru), while credit to medium-sized companies increased by 21.7% (instead of 1.6%) and to large firms and corporations did so by 22% (instead of 9.8%).

Reactiva Peru was created to enable 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/RMB/MVB

Published: 7/24/2020