Local currency loans gain ground in Costa Rica
Costa Rica's private and public banks saw total credit growing to 14.8bn colones (US$26.3mn) in March, a 12.4% annual increase, according to central bank data.
Private bank loans, including credit issued in colones and US dollars, increased 14.7% year-on-year to 6.10bn colones, while lending from public banking institutions grew to 8.70bn, or 10.8%.
While credit granted both in the local currency and in dollars showed increases, local currency lending has showed a stronger expansion despite a weaker colon.
In March, local currency loans reached 7.44bn colones (5.87bn from public banks and 1.58bn from private lenders), increasing 14.5% from March 2016.
Dollar-denominated loans, reported by the central bank in colones via the exchange rate at the close of the month observed, reached 7.35bn colones in March, up 10.2% from a year before.
Analysts, cited in local daily La Nación, noted increasing demand for the financing of farm goods, consumer purchases, services and housing as the main driver of loan growth. However, the weaker peso and a drop in interest rates is now beginning to diminish interest for housing loans.
Hairo Rodríguez, director of Banco Cathay, told the news outlet that the increased focus on colon-based loans at the bank is centered around commercial transactions and services, due to factoring.
BAC San José and Scotiabank saw the biggest increases in local currency lending last month and they were also the nation's two largest lenders. The banks saw colon-denominated loans rise 32% and 20%, respectively, from March 2016.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Costa Rica)
Proposal looks to open Costa Rica’s fuel market, Recope targeted
The state company warns that the legislative bill would lead to privatization.
Costa Rican firms worried over potential tax changes for free trade zones
The country’s finance minister recently said a tax review will be undertaken due to international taxation changes.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Morolica III multipurpose dam
- Current stage:
- Updated:
19 hours ago
- Project: Peuco Photovoltaic Park
- Current stage:
- Updated:
19 hours ago
- Project: CloudHQ Paulínia data center (GRU technological campus)
- Current stage:
- Updated:
19 hours ago
- Project: Diablillos
- Current stage:
- Updated:
19 hours ago
- Project: Installation of Sixth (VI) Generation Unit (Central Termoeléctrica Barranquilla, Termobarranquilla)
- Current stage:
- Updated:
2 days ago
- Project: Caballos
- Current stage:
- Updated:
2 days ago
- Project: Alameda - Melipilla railway (Melitren)
- Current stage:
- Updated:
19 hours ago
- Project: Mina San Francisco
- Current stage:
- Updated:
18 hours ago
- Project: Encierro
- Current stage:
- Updated:
13 hours ago
- Project: Sol do Canindé photovoltaic power plant
- Current stage:
- Updated:
2 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Masivo Silver Corp.
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Tuberfil Indústria e Comércio de Tubos Ltda.  (Tuberfil)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Emgesa S.A. E.S.P.  (Emgesa)
-
Emgesa S.A. E.S.P. is a Colombian company engaged in power generation for the wholesale market and industrial clients from the deregulated market. The company was incorporated i...
- Company: Energy Head
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Servicio de Salud Maule
-
Maule Health Service is the health service agency overseeing Chile's Maule region (VII). Its network includes 84 medical establishments, including 13 general hospitals. It is ov...
- Company: Grenergy Renovables Pacific Ltda.  (Grenergy Chile)
-
Grenergy Renovables Pacific Ltda. (Grenergy Chile) is the Chilean unit of Grenergy Renovables SL, a Spanish company that builds and operates PV and wind power plants. The compan...
- Company: Salgado, Melendez y Asociados Ingenieros Consultores S.A.  (Salgado, Melendez y Asociados Ingenieros Consultores)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Consorcio GA Energy Services, Coopsa Ambiental, Measure Solutions, Nuova Ghizzoni, Sicilsaldo
-
GA Energy Services Consortium, Coopsa Environmental, Measure Solutions, Nuova Ghizzoni, Sicilsaldo is a company made up of Coopsa Ambiental S.A. de C.V., GA Energy Services, S.A...
- Company: Petroserv Marine Inc.  (Petroserv)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Enterprize Energy Pte. Ltd.  (Enterprize Energy)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...