Peruvians’ liquidity is on the rise: delinquency rate fell from 7.4% to 6.2%

As of July 2021, index of delinquency in Peru it is 6.2%, while in January of this year it was 7.4%, according to the IV Delinquency Report, carried out by Equifax and Emprende UP.

Thus, the number of defaulters as of July 2021 was 788,000 people, while in January it was around 1 million Peruvians.

Sergio Soto, Equifax Business Development Manager, explained that until that month, the delinquent debt remained at S / 10,763 million, while in January of this year it was S / 12,738 million

“Non-performing loans are controlled and on the decline, however, apparently these indicators would not be reflecting the real effect of the pandemic and the current situation on rescheduled loans, this due to the stopped debt portfolio that harms the evolution of the non-performing loan ratio. ”, Said the expert.

The stopped portfolio, according to the Superintendency of Banking and Insurance (SBS), corresponds to rescheduled loans that have not registered payments in the last seven months. Therefore, they represent a high risk since they have a high probability of becoming delinquent. As of July 2020, they represented 10% of rescheduled loans.

Debt with cards also fell

Although “credit card” delinquencies were increasing until December 2020, in the following months a quite significant decrease is observed, with a variation of 50% from July 2020 to July 2021 in the percentage of delinquent debt.

“As of July 2020, the delinquent debt of credit cards in recent months has been reduced considerably, among other factors this could be due to the decrease in placements of this type of credit and not necessarily to an improvement in payment behavior” , details Soto of Equifax.

Peruvians reprogram less and less

“According to the new Delinquency Report, rescheduled personal loans have decreased steadily in recent months due to greater liquidity and access to extra cash such as AFP and CTS withdrawals”, Needs Soto de Equifax.

For example, as of July 2021, the reprogrammed amount is S / 28,791 million, while in January 2020 it was S / 52,309 million. This trend is due to the improvement in the economy of Peruvians, who prefer to pay their debts instead of rescheduling them and this benefit would no longer be as required as at the beginning of the pandemic.

However, the delinquency rate in the case of rescheduled loans is at 32.6%, while in January it was 25.7%. Although delinquencies have increased, the number of people with rescheduled loans is lower, which means that the people who maintain the rescheduling are less committed to the punctuality of payments.

Reprogramming of Reactiva Peru

With regard to non-performing loans, in Reactiva rescheduled loans, the index has been on a constant increase in recent months. Figures indicate that, as of July 2021, 7.8% of rescheduled loans are delinquent, while in January it was 3.5%. Despite the increase in non-performing loans, it continues to remain low, which means that companies are meeting their payment obligations, thus taking care of their credit profile.

On the side of the amount of FAE Mype reprogrammed credits, this continues to decline, as of July 2021 it only represents 0.5% of the total reprogrammed credits. This means that there is a total of 1,104 companies with rescheduled loans of this type.

FAE Mype rescheduling

Regarding the delinquency of FAE Mype rescheduled loans, this has been increasing and currently represents 31.4% of total loans, while in August 2020 it only represented 8.3%.

Finally, Equifax and Emprende UP consider it necessary to continue with the constant monitoring of the delinquency indicators of the different sectors of our economy in order to make informed decisions.