Guatemalan Credit Arrears Up 24%

©image: Sam Photos8.com

As a portion of the entire credit portfolio, late loans accounted for 3% of the total, while it was 2.5% in June 2008. Bad credits grew at a larger pace than the entire credit portfolio, which grew 5% in the last 12 months, reaching $8.856 million. These indicators reflect the deterioration of the banking sector, given that growth between 2007 and 2008 was 23%.

"...the deterioration of the late credits portfolio is a nothing more than a reflection of a slower economy, which has caused individuals and businesses to default on their loans", said Ronald García, CEO of "Banco de Los Trabajadores" in a Sigloxxi.com article.

Source: sigloxxi.com

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Irrecoverable Receivables Grow 37% in El Salvador

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From January 2008 to January 2009, the banking system’s unrecoverable portfolio grew by 36.9%.

The portfolio with the riskiest loans, known as "E" and classified as "irrecoverable," reached $246 million in January 2009, while $179.7 million were recorded in January 2008, a variation of $66.3 million.

28% Increase in Consumer Credit in Guatemala

October 2011

The amount in loans made in the first nine months of the year, $2,900 million, reflects greater economic dynamism in the country.

According to the Superintendency of Banks (SIB), these types of loans currently represent 26% of the entire banking portfolio.

The corporate manager of strategic planning at the Workers Bank, Mauricio Alvarez, said that consumer credit is one of the most attractive for banks.