When an economy grows the way Panama is doing, private sector credit becomes a dynamic engine that propels it even more.
At the end of the third quarter, the private sector’s credit portfolio has grown by 15% compared to the same period in 2010.
One sector that stands out in the private sector loan portfolio is construction, and an example of this is the strategy that some banks that have used in focussing on granting loans for residential projects.
In turn, industry, especially the sectors of power generation and food and beverage production has also shown significant growth.
Meanwhile, consumer credit, which in previous years had been a little depressed, has bounced back, but has still not reached levels from the times when the economy grew at a rate of 9%.
An article in Prensa.com states: "in September this portfolio amounted to $5,532 million, representing $431 million, equivalent to a growth of 8.4% compared to the same period in 2010.
Source: Prensa.com
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October 2011
At the close of July, $11 billion worth of new loans were granted, 17% higher than in the same period last year.
Among the different sectors of the economy, mining, livestock and fisheries were those receiving the most new loans.
"The biggest increase registered, in terms of percentages, was in mining and quarrying, where $15.2 million in new loans was granted, up from $12.3 million compared to figures from the same period in 2010.
October 2011
The International Banking Center notes a dynamic expansion of the internal loan portfolio to 20.5%, and the same can be said for the portfolio investments, up 14.7% during the month of August.
A press release from the Superintendency of Banks of Panama reads:
The executive report of the Superintendent of Panama banks reveals that the net accumulation from January to August 2011 totaled $885 million, or $175 million more compared to the same period in the previous year. This result is mainly due to an increase to 11.7% in the lines of interest income and 38.6% belonging to other income.
May 2011
Between March 2010 and March 2011, the growth in portfolio’s of banks providing loans was 6.1%.
The growth of economic activity in Guatemala is one of the reasons behind the increase in loans issued by banks, which have been distributed mainly among the commercial and consumer sectors.
November 2010
In the third quarter of 2010 the loan portfolio closed at $ 8,274 million, $ 400 million less than the $8,670 million of the same period in 2009.
According to the Salvadoran Banking Association (Abansa), the structure of the loan portfolio as of August 2010 consisted of consumer loans which comprised 28% of the total, housing 25%, commerce 14%, manufacturing 8.7 %, services 7.3% and the rest for other sectors.
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