Up until September, growth of private sector credit continued its downturn. This is explained by a lower demand of loans by larger businesses (from medium-sized to corporations), which have had a less of a need for these instruments, which goes in line with the lower execution rate of their investment plans. In contrast, credit for families (consumer credit and mortgages) has sustained a high growth rate, similar to that of 2018, mainly due to the bigger commercial efforts of the banks, within a context of reducing their funding costs.
In the remaining months of the year, the growth rates in the majority of segments will be moderate. Private investments and the formal labor market will continue to diminish, which translates into a reduced demand for loans. Furthermore, financial institutions will more clearly perceive an increase in late payments.