Do you want to give credit? These are the interest rates prevailing in Ecuador in January 2024

The reference active interest rate for corporate production loans, which is effective from January 1, 2024, has seen an increase compared to January 2023, as determined by the Monetary and Financial Policy and Regulatory Board (JPRF).

This started from 9.29% to 10.14%. The last one is the one that is in effect for active business, according to data published by the Central Bank of Ecuador.

The organization indicates that credit for productive business also had an increase. The interest has increased from 10.36% in January 2023 to 11.03% in January 2024..

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Meanwhile, other segments decreased by a minimal percentage.

According to resolution 603-2020-F of the JPRF, for the calculation of the effective reference interest rates for 2024, the weeks from November 23 to December 20, 2023, covering 355 financial entities, are taken into account.

This is how interest rates compared January 2023 with January 2024

The gross loan portfolio reached 42,129 million dollars in November 2023, the latest data available in the DataLab system of the Association of Private Banks of Ecuador.

Productive credit (difference between January 2023 and January 2024)

Microcredit

Three categories of microloans were reduced.

Consumer credit

Education loan

housing loan

real estate loan

Credit for public investments

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This is the interest rate on time deposits for January 2024

The interest rate on term deposits for January 2024 is 7.74%, as opposed to 6.65% for the same month of the previous year.

Since 2019, there has been an increase in the amount that banks pay for time deposits, which has gone from $11,910.54 million in September 2019 to $19,713.10 million in the same month of 2023.

This is due to the country’s inability to get cheap financing abroad due to the rise in country risk, especially after former President Guillermo Lasso declared the death of the cross last May.

Therefore, financial institutions consider that asking for money from an international bank is the same as getting it from the time deposits of their clients in the country.

Total time deposits in private banks through October 2023 amounted to $19,970.09 million, according to DataLab data. The money is divided into the following segments:

Meanwhile, in cooperatives, time deposits reached $14,479.79 million, for a total of $34,469.88 million in term money deposited between cooperatives and private banks through October 2023.