Andina

Peru: Credit to private sector up 9.4% in March 2021

12:18 | Lima, Apr. 24.

Credit to the private sector —which includes loans granted by banks, finance companies, cooperatives, as well as municipal and rural savings banks— grew 9.4% year‐on‐year in March, mainly due to loans associated with the Reactiva Peru Program, the Central Reserve Bank (BCR) has reported.

Excluding the effect of this program, total credit to the private sector would have fallen 7.0% year-on-year, it said.

By currency, credit in Peru continued to grow at two digit rates (17.6% in March), while credit in U.S. Dollars decreased 14.05% due to greater preference for funding in domestic currency.

In March, credit to firms grew 18.5% year-on-year, driven by higher loans in local currency (38.2%), while loans in U.S. Dollars dropped 14.5%.

On the other hand, loans to individuals decreased 4.5% during the last 12 months.

It is worth pointing out the dynamism of mortgage loans, which registered a year-on-year rate of 4.8% in March (3.4% in February).

The dollarization ratio of credit to the private sector dropped from 26% in March to 20% in March 2021, its lowest level.

This significant reduction is mainly due to a lower dollarization ratio of credit to businesses, which decreased from 38% to 27% in the last twelve months to March 2021.

On the other hand, the dollarization ratio of credit to individuals remained at the minimum level of 8%.

The dollarization ratio of credit to micro and small enterprises —the lowest in this segment— recorded 4% in March 2021.

Moreover, the dollarization ratio of credit to medium-sized companies dropped to 21%, while the dollarization ratio of credit to large companies and corporations fell to 42%. 

Concerning loans to individuals, the dollarization ratio of mortgage loans fell from 13% to 11% in the last twelve months, while the dollarization ratio of consumer loans remained at 6%, and the dollarization ratio of car loans increased from 15% to 17%. 

(END) NDP/MVB

Published: 4/24/2021