Time deposits from the private sector exceeded 2 trillion pesos in the first days of August. This is a rise of 63 percent so far this year. The trend accelerated as of May with the measures of the Central Bank in which an interest rate floor was imposed for this savings instrument in local currency. Since the beginning of the year, time deposits from the private sector (that is, from private and company accounts) have risen to 793 billion pesos.
Retail savings
In the monetary report for July, the Central Bank indicated that time deposits showed a monthly growth of 7.4 percent at current prices, which implied an increase of 4.7 percent at constant prices.
“Although they softened their rate of expansion compared to May and June, growth rates are still historically high, both in nominal and real terms,” the report highlighted. “The daily evolution of term placements reflects the positive impact of the policy of minimum interest rates, which ensures a positive return in real terms for all private sector depositors,” added the monetary authority.
In addition, it was detailed that, discriminating by the balance of the type of holder, there has been a trend since mid-May to a sustained growth of both the lines of human persons and of legal persons (companies).
“In the latter are financial service providers, such as the Money Market Mutual Funds, which increased their assets in this period, with a portfolio invested in just over 40 percent in term placements.”
In the case of retail savers, the 33.06 percent rate floor for term placements was key, promoted by the monetary authority. This yield implies an effective annual rate of 38.57 percent.
Subsidized loans
The increase in fixed terms with an interest rate floor to protect retail savings in local currency was complemented by a credit policy for small and medium-sized companies with subsidized rates. “Within the commercial lines, the line to MSMEs and Health Service Providers stands out, which accumulated disbursements at the end of July for 343,777 million at rates lower than 24 percent, of which 8,300 million corresponded to health service providers”, remarked the monetary authority.
–
