Monday , June 21 2021

Because of high interest rates in October, bank loans contracted more than 5% real



Monetary authorities estimate that "in real terms and seasonally adjusted credit lines accuse a general decline in all segments, which determines the average fall of 5.3% in October. "

Revocation of total loans in one month where the monthly average rate is placed in the range of 30% per annum for pledges and 74% per annum for overdrafts in the bank checking account, equivalent to a range of 3% over 6% per month, reflecting debt cancellation clean.

Partners of these movements will increase financing with suppliers, delayed payments, and cut in terms of payments to customers, as a way to cut interest costs, even though with costs having to face lower sales and production

One of the most contracted segments is discounted documents, especially deferred payment checks and promissory notes, which fall with a nominal amount of 4.7% above the September level; and they are almost up 2.9% a year, in a scenario where inflation is expected to have risen to 46%.

Less use of collateral

In the case of loans to non-agricultural companies, the monetary authority detects "disarmament from the part of its currency position, which reflects the substitution of funding sources", as a way to avoid increasing the cost of the line at the peso, and optimize the use of excessive positions in foreign currencies.

Loans are mainly given to families, both Credit card financing such as personal loans continues to decline in real terms and is adjusted for the season, with a decrease of 3.3% and 4.1 monthly, in each case.

Central also noted that "the balance of loans in the private sector decreased 2.3% (USD375 million), placing a monthly average balance of USD 15,780 million," mainly due to a decrease in discounted documents to single companies (especially export pre-financing).


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