In Peru, loans requested to acquire new vehicles totaled S/.977 million (about US$307 million) last June, leading to an growth of 5.17% compared to its previous month (May) and a 63.94% increase, in comparison with its similar month the previous year, Peru’s Banking Association (Asbanc) affirmed.
Likewise, it indicated car financing in foreign currency totaled US$410 million, which meant a 4.87% decrease and a (-26.42%) decline compared to May 2015 and June 2014, respectively.
The association indicated the behavior responds to mainly two factors:
“First, people act reflexively every time, when it comes to assuming debts and prefer these in the same currency as their revenue, especially if these [debts] are long-term ones, moreover taking the strong currency recovery into account […],” Asbanc indicated.
Second, the Peru’s Central Reserve Bank (BCR) applied-measures intend to ‘de-dollarize’ the loan portfolio, which has led to a higher supply of vehicle loans offered in domestic currency. It has also boosted the Dollar into Soles (Peruvian currency) loan conversion.
Meanwhile, the total of new vehicle loans granted in domestic currency totaled 9,334 in the first months of 2015, exceeding by 87.81% the amount reached in the same period of 2014.
(END) RGP/RGP/MVB
Published: 7/27/2015