|
|
|
 Business News | May 2008 
Mexico Banks' March Private Sector Loans Up 21 Pct
 Noel Randewich - Reuters
go to original
Mexico City - Mexican bank lending to individuals and companies increased 21.1 percent in March over the year-ago period, the central bank said on Wednesday.
Bank consumer credit fell 4.7 percent, mainly because Banamex, the Mexican unit of Citigroup (C.N), moved credit card debt off its books and into a specialized lending company called Tarjetas Banamex.
In February, bank lending to the private sector rose 24.6 percent and consumer credit increased 19.6 percent.
Healthy consumer lending is seen helping Mexico's economy stave off damage from a steep slowdown in the United States this year.
The government and economists expect the Mexican economy to grow about 2.8 percent this year, down from 3.3 percent in 2007.
Bank mortgage lending rose 20.2 percent in March while bank loans to businesses were up 29.4 percent, the central bank said in a statement.
The average credit card interest rate in March was 34.27 percent, the same as in February, the central bank said.
Consumer credit was nascent in Mexico when its economy was dragged down by the last U.S. recession at the beginning of the decade. Now lending is growing steadily and is expected to help offset a drop in U.S. demand for Mexico's exports.
An ambitious government program to build highways, dams and other infrastructure projects is also expected to keep Mexico's economy humming this year.
Lending in Mexico dried up in the mid-1990s after a financial crisis devastated the country's banking industry.
Since then, international finance houses such as Citigroup and BBVA (BBVA.MC) have bought up most of Mexico's largest banks and in recent years they have started lending again.
Bank lending to the private sector stood at $143 billion in March, the central bank said.
Growth in consumer lending peaked at an annual rate of nearly 50 percent in 2005 and 2006. Since then, it has trended lower and banks have made it easier for Mexicans to acquire credit cards. ($1 = 10.5154 pesos)
(Editing by James Dalgleish) |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us