Cusco: tourism companies cannot pay their loans

Companies and micro-enterprises from Cusco dedicated to tourism are going through a difficult situation. They drag debts with the financial system.

According to figures from a recent investigation by the Center for Business Studies of the Chamber of Commerce of Cusco, the level of delinquency in the region increased from 2.5% to 5.6% with constant evolution since 2022, being the districts of Cusco and Wanchaq those that lead the list with 56% and 21% respectively as of January 31, 2023.

Tourism is the sector with the most debts.

According to him President of the Cusco Chamber of Commerce, John Gonzales, 50% of the business community linked to tourism has been in debt for four months. Most reside and work in the provinces.

“They live from tourism in tracing and Urubamba. Businesses dedicated to tourism have been closed there and they continue to owe because the income is not enough. Staff have also been fired or given perfect suspension. We have requested provisions and incentives from the Government for the companies in the tourist corridor and also for the personnel who lost their jobs, because even if they apply, they do not qualify for a loan,” said Gonzales.

The reason for the debts were social conflicts. Entrepreneurs stopped receiving income. Therefore, they stopped paying debts they contracted months ago to invest in their businesses as part of the economic recovery after the pandemic.

“We have a high level of delinquency with reference to past years. The social conflicts from November to February have caused businessmen to be unable to pay their debts, some have even gone bankrupt,” said Gonzales.

The Chamber of Commerce indicates that by March 2023 the situation has found some calm, due to the reopening of roads and the slow return of national and international tourists.

However, according to specialist Rolando Aguilar, the risks prevail due to the uncertainty that does not allow entrepreneurs to take risks with more loans. Some chose to declare bankruptcy and close their businesses.

The solution, according to the Chamber of Commerce, is the Executive. They requested the Ministry of Economy and Finance help refinance or defer debt payments for 4 to 6 more months, especially those of Reactive.

new loans

Companies from Cusco in different areas began 2023 with more than 7 million soles in credits.

In January they chose to request loans in banks and municipal savings banks. Cusco ranks seventh nationwide in demand for credit.