Return of Goods Purchased on Credit Increases by 77%

©image: ArtemFinland

The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.

Edgar Delgado Montoya said in his article in Elfinancierocr.com that "it is clear that banks are forced to take possession of the goods even when they don’t want to do so. It is therefore important for customers to look for solutions before it is too late.”

Source: elfinancierocr.com

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Costa Rican banks are reporting an increase in loans, specially for industry, services, commerce and home building.

Event though stats for the first half of 2009 do not report an increase in the credit balance of the banking system, "bankers forecast higher loan growth than predicted by the Central Bank in its macroeconomic program revision. The Bank estimated credit growth at 4.3% in Colones and 3% in U.S. dollars."

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In January 2011, indebtedness in Colones was 59% of total loans, compared to less than 50% in 2009.

The low Dollar value and relatively low rates in Colones encourage borrowing in national currency.

Gerardo Corrales, manager of BAC San José, told Nacion.com, "... the decision to take a debt in Colones or Dollars, besides interest rates depends on customer expectations of devaluation or appreciation of a currency against the other."

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There have now been seven consecutive months during which the default rate of borrowers from the Banco Nacional de Costa Rica has increased, having exceeded the normal limit of 3% over the past three months.

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