Financial institutions last October delivered 1,326 million dollars in loans, “a negative annual variation rate of 40.5%,” according to the BCE (Central Bank of Ecuador for its Spanish acronym). This month, 465,990 operations for an average amount (per unit) of $ 2,847.2 were recorded.
Credit is substantial for the development of an economy. To find its importance, credit is divided to the size of gross domestic product (GDP). The ratio is 24.63%, which means that this is the percentage in which financing collaborates in a certain way with the circulatory system of the economy. This is the money that serves to finance to households, companies or the public sector itself. If it falls, then the flow also slows down.
But not only private institutions were involved, but also the public. The latter showed an even more drastic falling of the credit, by dropping a 57.7% in October-2015 in relation to October 2014. 51% of the average loan was granted by the National Finance Corporation (CFN) and 48.3% by the State Bank (BEDE). In October alone, banks granted $ 46.4 million.
Translated into English by Pierina Abad