HomeEconomyCredit has increased more than 90% year-on-year

Credit has increased more than 90% year-on-year

The development of agriculture, entrepreneurship and the obtaining of consumer goods are financed

The credit portfolio in Venezuela stood at 1.690 billion dollars, as reported by Vice President Delcy Rodríguez during the inauguration of the Expo Fedeindustria 2024, which shows a new economic dynamism in the country.

“This impulse must go directly to production, to recover the capacities of companies and industries,” said Rodríguez, who assured that this contributes to the growth of the economy that has been evident in the last year.

But in what way is credit being used to give these results? Últimas Noticias He held a conversation with finance specialist and professor José Grasso Vecchio who explained to us where the credit portfolio in the country is directed.

“It is undeniable that in the last year every month it has been growing significantly between 80% and more than 90% year-on-year, each month,” said the co-founder and president of IGC Consultores from his office.

Agricultural development

In this sense, he explained that the majority of these credits are intended to finance agricultural activity, especially to items such as: corn, rice, sugar cane, vegetables and poultry, which has resulted in "no evidence of any kind." of shortages in any of these (raw) materials.”

These credits, spatially speaking, are concentrated in states such as Guárico, Barinas and Cojedes, added to the Andean zone in the production of vegetables.

“Agricultural development, livestock development, poultry development is occurring in all states, but evidently this area of ​​Guárico, Barinas and Cojedes has a greater concentration,” said the specialist.

In addition to these items, there are others that are not part of the mandatory credit portfolio, but that are booming, supplying local consumption and export, such as legumes, sesame, coffee, cocoa, aloe vera and shrimp.

“Today, Venezuelan cocoa is regaining its presence in Europe and Asia, where Venezuelan coffee is hitting the market and there is good quality. The shrimp and so on,” he added.

Women and entrepreneurship

The finance specialist also commented that, through social programs, the national government allocated 15% of the credit portfolio to develop projects through Credimujer.

“More than 50.000 loans have been delivered to entrepreneurs in Caracas, in Bolívar, in Carabobo, in Zulia, in Nueva Esparta,” Vecchio said.

But it is not only female entrepreneurs who benefit through bank financing. Any natural person who is registered in the National Entrepreneurship Registry can also access this type of credit.

“These people are receiving credits that range, in the equivalent in bolivars, between 100 and 16.500 dollars. They are small loans, loans to start a business and this is counted within the microcredit portfolio,” commented the professor.

Vehicle credit

But beyond agrarian development and entrepreneurship, some credits aimed at obtaining goods that improve the quality of life of Venezuelans have begun to come onto the market.

Grasso Vecchio asserted that public and private banks are making great efforts in order to finance the acquisition of cars. “Some give up to three years, others up to five years and they have also returned to the offers that you see there.”

Regarding credit cards, he explained that the increase in their limit is taking place, where accounts with limits of up to $100 maximum are already appreciated.

Low delinquency

As has been shown in some buy now and pay later systems, in terms of bank credit, delinquency (which are loans with payment problems) represents only 2%, which means that the credit portfolio is of good quality. quality.

“Venezuelans take care of their credit and that financial institutions are also lending, of course with the appropriate analyzes to manage their risk in an optimal way,” he added.

In this sense, he asserted that the 2% delinquency rate places the country among the lowest in any other financial system in the world.

“In addition to the fact that there are few loans with problems, banks have reserves to cover more than 200% of these loans. That is, it is over reserved. That is also something I want to highlight, the quality of the credit portfolio,” he emphasized.

Missing? However, Vecchio assures that there is still much to do in terms of credit, with the aim of this serving to continue boosting the local economy.

An example of this is that credit for vehicles must continue to be strengthened, in addition to providing financing for the remodeling or acquisition of homes, although in this last aspect, banking entities must work on reviewing aspects of legal security and the issue of liquidity. to guarantee payment.

“I'll give you another example, freight transportation, public transportation, the vehicle fleet. All of that has to be renewed and one way to renew it is through credit,” she added.

He also commented that credit activity must be strengthened in areas of interest to the country, such as tourism or the development of projects in special economic zones.

In this sense, the specialist sees it likely that the legal reserve could be progressively modified, which currently stands at 73%, this is due to the fact that since there is no "speculative credit", the exchange rate has remained stable and inflation that It will not exceed 50%.

“Controlling these variables ensures that the credit is directed to these areas that interest you, where there are special economic zones that you want to develop, where there are tourism activities, where there are entrepreneurship activities, you can progressively go down, adjusting the fit and you manage the situation. ”, he assured.

bankarization

The finance specialist assured that banking use in Venezuela currently reaches 84% ​​of the population, which is a great increase compared to the 70s when the figure only reached 25%.

“What does it mean that they are banked? Nowadays everyone has accounts and that also formalizes activities more, they protect people,” he explained.

Grasso Vecchio assured that this places the country, at the Latin American level, in the top three in terms of banking, behind Chile and Brazil, which occupy first and second place, respectively.

In this sense, he asserted that this is the result of the great joint work that all financial actors, public and private, have done to make access to banking more flexible to allow people to have access to the country's banking system. .

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