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Loans to SMEs are more expensive

restrictive policy Central Bank and increased delinquency These sectors account for rising interest rates on loans they make.

The setting of monetary policy and rising bad debts, affecting mainly the corporate sector borrowers.

Since September 2010, the date from which there is a record of the new classification of loans, loans in soles to micro and small enterprises (MSEs), as well as medium-sized enterprises are most are expensive.

In the case of micro, the interest rate Average domestic currency rose from 30.92% to 32.58% between September 2010 and March this year, while for small businesses was increased 23.56% to 24.67% and for medium-sized enterprises increased from 8.67% to 10.86% .

In the same period, the rates for corporations move from 5.47% to 5.52% and, by contrast, become cheaper loans for people in the mode of consumption (the rate drops to 39.49% to 38.27%) and mortgage (from 9.61% to 9.29%).

banks are clear that the monetary tightening, resumed in January by the Central Bank, and the increase in defaults, have stressed the rising cost of financing for micro, small and medium enterprises.

The withdrawal of monetary stimulus by the BCR-way lift its benchmark interest rate and reserve requirements, aimed at moderating credit growth and, thus, to avoid overheating the economy and exacerbate inflation.

regard, bank executives said that this restrictive policy increases the cost of funds for these institutions, which is passed on to customers through of higher interest rates.

earn less

Although also recognized that the increase in defaults of micro and small enterprises, higher late payment of its debts, it leads to banks raise interest rates for these loans.

"So is that now the banks and serving these sectors earn less. They should have more supplies to support its portfolio," said a bank manager.

Some banks, the growth of nonperforming loans in the microenterprises segment is because these customers were the most affected by international crisis, but others admit that this deterioration is explained by a certain flexibility in the loans that led to the overhang of some companies.

Figures

2.89% is the default rate on bank loans to microenterprises .

4.71% was the delinquency rate of loans to small businesses in the banking system in January.

soles totaled 2.376 million at that date, the loans of the banking system to Micro.

What is

- Banks believe that the rates for mypes and medium enterprises shall be consistent in terms of delay for these clients and the Bank's policy Central de Reserva del Peru (BCR).

- Most bank executives are inclined to think that the slowness of these sectors decline this year.

- On the other hand, see greater stability, future interest rates for people in both consumer loans such as mortgages.

Via ADEX

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