SBS: granting more loans is not going to get us out of the recession

In a context of recession, as is experienced in Peru, the Superintendency of Banking, Insurance and AFP (SBS) indicated that microfinance institutions must be more cautious to avoid falling into insolvency.

Jorge Mogrovejo, superintendent of Banking and Microfinance at the SBS, pointed out that credits would not get out of this situation, but rather by improving confidence so that there is greater private investment and public.

“No country has emerged from a crisis by giving credit, because, since it is in recession, people cannot repay the loans. If the banks did that and wanted to get the country out of recession, they would go bankrupt. It has to be a joint effort, public and private sector, and an adequately solvent financial sector,” he said during the inauguration of the XIV International Microfinance Congress in Tacna.

According to Mogrovejo, programs like Impulse MyPerú Yes, they are important initiatives, since they constitute public spending. The State pays high rates to microfinance institutions for non-compliance by users and the financial situation is not put at risk. money of depositors. “At this moment what is needed are credit guarantee mechanisms like these,” he told La República.

Microfinance in times of recession and inflation

The superintendent emphasized that this process of simultaneous recession and inflation will pass quickly. However, microfinance institutions must be especially careful when granting loans, given that the number of borrowers and the universe of those who are able to repay them will be reduced. All this would generate more competition between entities.

“It is not that in a recession credit is going to paralyze, it is simply that risk managers they have to be much more careful”Mogrovejo said.