Andina

Peru: Credit to private sector up 14.4% in August

Photo: ANDINA/Archive

Photo: ANDINA/Archive

12:41 | Lima, Sep. 25.

The Central Reserve Bank (BCR) on Friday reported that credit to the private sector —which includes loans granted by banks; finance companies; municipal and rural savings banks; as well as cooperatives— accelerated from an annual rate of 14.2% in July to 14.4% in August —boosted by the Reactiva Peru Program.

"Without the disbursements associated with said program, credit to the private sector would have registered an annual decline of 0.3%," it said.

The BCR indicated that Reactiva Peru has sustained the payment chain by granting more than 522,000 loans to all economic sectors, and has financed them at historically-low interest rates.

"In August, Reactiva Peru's loans amounted to S/10.3 billion (about US$2.877 billion), which boosted credit to companies to a high annual growth rate of 24%. Without Reactiva Peru, business credit would have declined 0.3% annually," it said.

The issuing entity highlighted that this program has allowed a greater expansion of credit in all business segments during August.

"Credit to micro and small enterprises increased 28.4% (it would have fallen 3.7% without Reactiva Peru), loans to medium-sized companies grew 37% (instead of -1% without Reactiva Peru), and those aimed at large companies and corporations increased 16.9% (1.4% without the program)," it explained.

(END) NDP/CNA/JJN/MVB

Published: 9/25/2020