The Reactiva Peru program has sustained the payment chain, benefiting more than 501,000 companies. Of these, around 98% are micro and small companies (mype) and it has financed them at historically low interest rates.
According to Scotiabank’s Department of Economic Studies, growth in almost all credit by economic sector is remarkable. Those that grew at a higher rate are the most important for the economy such as Commerce, Services, Manufacturing and Construction.
According to statistics from the Central Reserve Bank of Peru (BCR), the Reactiva program disbursements totaled 57.8 billion soles between May and October 2020; which boosted bank credit to an annual growth rate of 11.4% in that same year. Excluding Reactiva, credit to the private sector contracted -4.6% in 2020 according to the BCRP.
“The program has allowed a greater expansion of credit, especially to non-corporate companies. Loans to micro and small companies (mype) increased 41.6%, loans to medium-sized companies by 53.4%, and disbursements to large companies by 21.8%. Excluding Reactiva, loans to mype and medium-sized companies fell -4.9%, while loans to large companies fell -6% in 2020, ”explained Scotiabank.
By economic sector
When decomposing the commercial portfolio by economic sector, it is observed that the Wholesale Trade sector, which has a greater weight in total loans (9.5%), grew 37.1% in 2020. Also, Retail Trade had a growth of 33.2%, rhythm higher than 2019 (-1.9%).
On the services, Transportation and Communications side, which has a 6% share of total bank loans, it managed to grow 28.1%, accelerating with respect to 2019 (24.2%). Credit to Business Activity grew 31.3%. Construction had a great rebound, growing at a rate of 41.6% in 2020, a rate much higher than the 4.4% in 2019.
Loans to the Manufacturing sector also accelerated compared to 2019. Vehicle sales and repair grew 23.5%, Cement did 11% compared to 8.3% in 2019; Manufacture of rubber and plastic products reversed the drop of -4% in 2019 and expanded 12% in 2020.
On the side of the Non-Primary sector, credit to the Agro-export Sector, which has a 3.3% share of total loans, grew 16% last year, while that granted to the Fishing sector did so by 27.3%.
In the case of the Energy sector, a great recovery is visible (-22% in 2019 compared to 13% in 2020).
“This year, credit to companies is expected to slow down due to Reactiva’s large base in the balances of 2020. This evolution will depend on the actions taken by the Ministry of Economy and Finance (MEF) and the BCR on rescheduling in Reactiva and also in accordance with the development of new measures that it carries out to continue supporting the chain of payments in the economy. The Agro and Construction sectors are growing above their pre-pandemic levels, which could generate sustained growth in credit to these sectors, ”the financial entity pointed out.
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