50% of users in the south have stopped paying their debts

50% of users in the south of the country have stopped paying their debts to the financial system due to the demonstrations that are forcing many businesses to remain closed, according to the Peruvian Federation of Municipal Savings and Credit Banks (Fepcmac).

“There is a risk of increased delinquencybut not only at the level of the boxes, but of all the entities, since there are totally paralyzed areas. In the south it is being observed that 50% of borrowers are defaulting on their loans”, Jorge Solís, president of Fepcmac, told La República.

For this reason, the federation warns that around 2 million micro and small businesses are in danger of leaving the market, which represents 6 million jobs, not to mention that 3 million of these types of companies have already closed due to of the pandemic.

It should be noted that this sector generates its income through the campaigns that take place throughout the year. Thus, the 2022 Christmas campaign was lost due to the start of the protests, while the school campaign is about to be lost, since it involves businesses that manufacture uniforms, footwear, backpacks, as well as the marketing of school supplies; On the other hand, the campaign for the Mother’s Day is also at risk.

“A credit leverage of at least S/10,500 million and a portfolio purchase program to relieve borrowers who are unable to meet their obligations. In addition, it is important that the SBS dictate debt rescheduling measures for four more months,” Solís explained.

Closure of entities

All the financial entities of Ayaviri, Yunguyo and Ilave, in Puno, remain closed to provide security to users and workersbut this does not mean that they have paralyzed their activities or have withdrawn, since virtual attention has been activated, according to Fepcmac.

are around 40,000 users of the boxes that are in these areas and a total of 100,000 counting the rest of the entities that operate in this area that are affected. “It is important to point out that there is no problem with people’s savings, there is also a deposit insurance fund that guarantees the savings of the supervised entities. The most affected are the clients who are prevented from carrying out different operations”, clarified the head of the Fepcmac.

In the south of the country there are 100,000 users affected by the closure of branches of various financial institutions.