It was one of the distinguished campaign promises of the President of the Republic, Guillermo Lasso. Deliver $1,000 million in agricultural loans with a 30-year term and a 1% interest rate that began to crystallize since January 2022. Mauricio Salem, general manager of BanEcuador, an entity through which loans are approved and delivered credits, spoke with Diario EL UNIVERSO about the advances of the Credit of Opportunities program. He also reveals the current situation of the entity that is in the process of being called the Economic Development Bank and merging with the National Finance Corporation (CFN).
When did the credits begin to be given at 1% and 30 years term?
The Opportunities Credit began to be delivered on Monday, January 3, 2022. Its objective is to strengthen economic reactivation, generate more sources of employment and improve the quality of life of Ecuadorians.
How many resources currently exist for this product?
BanEcuador has provided $100 million of its own resources to finance the credit for opportunities. This financial product has the backing of the national government to provide sustainability to the institution and guarantee the security of the bank’s assets.
At least $100 million this year would be delivered through BanEcuador in 1% credits
How many credits have been issued so far and how many are in the approval process?
Since January 3 of this year, when the delivery of these credits began, to date (March 28, 2022), we have registered and processed 14,054 credit operations for an amount of $42,597,668 delivered. At this moment that we are talking, we have another 3,324 more credit operations to process for $10,108,520. This means that, in less than three months, we already have 17,378 credit operations for an amount of $52,706,188.
What sectors of the economy predominate in the credits delivered to date?
In this first phase, it has been considered to serve the agricultural and livestock sectors of the country. But it is very important to indicate that, from BanEcuador, we have delivered regular credits in all sectors: commercial, services, tourism, to beneficiaries of the Human Development Bonus (BDH), among others, for an amount that exceeds $ 340 million delivered. from May 24, 2021, when President Guillermo Lasso took office, to the present.
What is the amount and the term that is handled on average in these first months in the credits delivered?
Regarding the Opportunities Credit, according to our records, the average delivery amount is $3,000 over a five-year term.
BanEcuador would manage a ceiling of up to $5,000 per beneficiary for the initial credit phase at 1% for a 30-year term
The maximum amount for this type of credit was established at $5,000 per beneficiary, why?
The central objective of this type of credit is to reach those who make up the base of the pyramid in our society. The meaning and purpose of credit is to democratize access, and for loans to reach as many Ecuadorians as possible.
We do not deliver an amount. We deliver hope, we deliver savings, we give Ecuadorians the possibility of formalizing and reactivating. A credit of $3,000 today costs a small farmer in the informal sector 20% per month, that is, $600 a month. With the Opportunities Credit, they pay $2.50 a month or $30 a year, representing a savings of $7,000 a year to reinvest in their business. That’s the comprehensive benefit you get. That is the difference. In addition, we managed to reach more beneficiaries, achieving a true democratization of credit.
Are the applicants more women or men?
The consolidated information that we handle in BanEcuador is that the percentage of credit placement of opportunities, so far, is a participation of 57% in women and 43% in men.
How is BanEcuador’s recovery process going? How did the entity close in 2021?
In terms of portfolio recovery between restructuring processes, novations, refinancing and original loans, BanEcuador achieved an amount of $520.1 million in 2021, through 110,789 operations. Of this total, $440.2 million correspond to original credit through 99,159 operations; 7,050 operations are refinancing for an amount of $52.4 million; 4,065 operations correspond to restructuring for $22.7 million; and $4.7 million are from novations through 515 operations.
We have structured a plan to reduce delinquency, which today is around 20%, through a healthier placement and a much more professional and effective recovery.
Mauricio Salem, manager of BanEcuador: I am going to implement a ghost client system to see where the tentacles of corruption exist
When is the change to the Economic Development Bank expected?
We are developing a joint and consolidated strategy for planning, articulation, organization and implementation. On this specific issue, Iván Andrade, Chairman of the Board of Directors of both institutions, is the one who leads and knows this process with greater precision and detail.
How is the process going and when is the merger with the CFN announced by President Guillermo Lasso expected?
The process officially begins with the promulgation of the respective executive decree. What I can say is that each institution has already been doing its task responsibly and prudently, separately, and some others together (those that are possible) to optimize all resources, and thus arrive with everything in order to the merger process when it corresponds to formalize it. (I)
Source: Eluniverso
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