Asbanc: Bank loans will grow between 6% and 10% this year

Por: Johan van Ginhoven

Bank loans will grow between six and ten percent this year, anticipating a surge in the second semester after very little growth in the first semester, according to the Banking Association (Asbanc).

Loan placement grew more than 30% last year, when gross domestic product (GDP) surged to almost 10%.

Nevertheless, in the first semester 2009 the economy has grown1.0% and it is estimated that it will reach 3% this year, which will take some dynamism out of loan placement. Bank loans have increased very little the first part of the year, as well as deposits, compared to 2008, but still has not stopped despite less economic dynamism.

Asbanc foresees a gradual improvement in credit dynamics in the second half of the year, due to an improved international outlook as well as the solid fundamentals of the Peruvian banking system and its economy.

In this respect, at a recent meeting with the Latin American Banking Federation(Felaban) held in Spain,the strength of the Peruvian financial system was underscored, particularly its low level of default rate and certain dynamism despite the international crisis.

The international economic crisis situation provides Latin America a great opportunity to take advantage of its geographical location and its productive capacity to invest in education so as to boost its development, said Felaban’s secretary general during its latest meeting in Spain.

Lastly, Iglesias underscored that in this situation there is an increasing tendency towards taking loans in local currency (nuevos soles), which in turn diminishes exchange risks.

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