La Jornada – Lending to manufacturing companies grows by 10.8% in August: BdeM

In August, the balance of the current portfolio of loans granted by banks to production companies in the country amounted to 2 billion 838 thousand 884 million pesos, an increase of 10.9 percent compared to the same month of the previous year, the latest shows data available from the Bank of Mexico (BdeM).

The advance of loans to production companies in a context of high inflationary pressures is due to the need for resources to carry out new projects, in addition to the fact that small and medium-sized enterprises need provisions to cope with the current economic scenario, Intercam analysts underlined.

Since January of this year, this segment of financing, which is equivalent to 54.4 per cent of the total credit portfolio (5 trillion 214 billion pesos) has grown steadily and in the last month the bank has disbursed 4 thousand 300 million pesos in new loans.

According to Intercam, in August, the sub-segments with the greatest growth were the agricultural sector with an advance of 18.8 percent; that of transport, mail and storage with an increase of 15.8 per cent, that of the mass media which increased by 14.2 per cent and that relating to accommodation, food and drink activities whose expansion was 13, 5 percent. Comparisons are made on an annual basis and in nominal terms, not counting inflation over the period.

Meanwhile, the overdue portfolio balance of these loans reached an amount of 62,000 559 million pesos, which represented 22.7 percent more than in August of the previous year and is the equivalent of 2.2 per percent of the residual balance of the segment.