Asunción: The report on credit origination in the country (SGC), corresponding to the second quarter of 2024, shows that 69.6% was in banks, 21.7% in financial companies and 8.7% in other credit institutions. By comparing the opinion of the respondents with previous months, it is possible to deduce the best time to take out a loan.
According to data collected during the reference period, 73.9% of respondents agreed that the economic situation is optimal for lending to the private sector. This percentage is 13.9 percentage points higher than in the same quarter of the previous year, but 6.1 percentage points lower than in the first quarter of 2024.
The confidence index reached a value of 69.3, above the results for the same quarter of 2023 (68.1).
Industry expectations remained optimistic for the 3-, 6- and 12-month periods.
In the second quarter of 2024, respondents answered that the most important aspects to be assessed when granting loans are first the economic aspect, followed by the climatic and political aspects, which are among the most important.
On the other hand, the main reasons that hinder lending to the private sector are customer history, lack of customer information, insufficient profitable projects and poor collateral of the borrower.
The majority of respondents stated that there are significant differences in requirements between financial institutions regulated by the Central Bank of Paraguay (BCP) and those not regulated by the monetary authority.
Almost all financial companies surveyed rejected at least one loan application in the last three months, mainly due to the customer’s creditworthiness, doubts about the financial situation of the company or the person applying for the loan.
Finally, based on the reports of the respondents, borrowers point out that there is a lot of bureaucracy when applying for a loan.
Wochenblatt / Economia Virtual / Article image archive
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