Thursday, June 1, 2023

Credit in foreign currency represents 22% of the total portfolio

The foreign currency portfolio represented 22% of the credit granted by financial intermediation entities as of December 2022, according to the Foreign Currency Portfolio Behavior report from the Superintendence of Banks.

Thus, credit in currencies other than the Dominican peso amounted to US$6,351 million, for a year-on-year growth of 28.9%, reflecting a rebound effect since the fall suffered during the pandemic.

According to the report, at the end of December 2019, the participation of the portfolio in foreign currency represented 23.1% of the total portfolio, but at the end of 2020 it fell 4.1 percentage points (reaching 19%) as a result of the pandemic.

Regarding the sectors to which the credit is directed, tourism has the largest participation with 22.2%, Manufacturing Industry with 12.3%, while the lines of Commerce and Financial and Insurance Activities have a joint 21.3%. All of these account for 55.9% of loan balances.

The foreign currency portfolio granted to pure non-generators (debtors who, due to their economic activity, do not generate foreign currency) as of December 2022 represented 24.6%. At the same time, this segment recorded an increase in guarantee coverage, standing at 64.8% and showing the tendency of entities to cover their risks.

portfolio risk

Regarding risk, the report maintains that the delinquency levels of the foreign currency portfolio show a downward trend, standing at 0.4%, below the system average.


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