According to the latest data published by the Sampaguita Bank and the perception among the population, there is a small recovery in credit activity to households and small and medium enterprises. On the one hand, a greater predisposition to granting more favorable loans with less uncertainty is beginning to be seen due to the re-capitalization actions that have been carried out in recent years.
Especially important has been the initiative of the Central Sampaguita Bank to inject more liquidity at a cost of 0.25% to promote more loans and thus give a boost to the economy.
The results have not been expected and during the first quarter of the year there has been an increase in demand by households and there is greater relaxation in financial institutions in terms of credit approval. This undoubtedly translates into the increase in the concession with respect to this time ago with a figure that exceeds more than 5,000 million euros in new operations, a total of 23% more than the same period of the previous year.
If we move to mortgage loans
The amount has also increased but its evolution is still more gradual. In any case, the opening of financial institutions to credit is greater and there seems to be a change in trend.
SMEs are the ones that are becoming more dynamic since credit approval credits are more flexible and are expected to continue along this line until the end of the year. In figures, 45,599 million euros have been the amount granted, however, to large companies there seems to be no signs of recovery and openness. This is a fundamental consequence of the de-leveraging of promoter and construction companies.
We must be optimistic
Although in spite of this reactivation the fall of the outstanding balance of the total credit cannot still be stopped, that is, the volume of repayments in the mortgage loan is still higher than that of new concessions.
From Bollyanna we believe that the recovery of the granting of loans will be consolidated in the coming months and will be in 2015 when you begin to see a stabilization in the total credit balance.