A study by the Central Bank of Uruguay identified 657,581 people with at least one rating as unrecoverable debtor. Consumer credits, the most requested.
In Uruguay there are more than 700,000 people classified as debtors with difficulty in their ability to pay, according to the Credit Risk Center (CRC) of the Central Bank of Uruguay (BCU) which, as of May, had 1,905,155 people from the country registered as debtors.
He over-indebtedness it is a problem that Uruguay It is not recent, but it has been put on the table for debate in recent months through different bills that were presented or discussed in the Parliament. In particular, there are two situations that have shed light on the issue to a greater extent: on the one hand, the bill presented by pro-government senators that seeks to bring a solution to debtors in Resettable Units (UR) of the Mortgage Bank of Uruguay (BHU); and, on the other, the campaign to collect signatures carried out by Town meeting with the objective of achieving the plebiscite that allows to modify the Constitution and incorporate a limit on interest rates on consumer loans —after the parliamentary failure of his project.
In this context, the BCU presented a report called “Indebtedness of individuals in Uruguay”, prepared by the entity’s economists, Rodrigo Arnabal, Cecilia Dassati, Victoria Landaberry, Jorge Ponce and Santiago Taroco. The study, which collects data up to May of this year, indicates that of the 1,905,155 people registered with the CRC, 705,534 people are classified as debtors with difficulty of ability to pay. In terms of amount, this last group represents a 29.2% of total loans granted by the banking and financial system in the country, and the average amount owed is 165,864 pesos.
When analyzing the characteristics of Uruguayan debtors based on their sex, the study found that of the total number of people registered with the CRC as of May of this year, 46.5% were men and 53.4% women. Furthermore, on average, debtors have 2.1 relationships with financial institutions, said average being slightly higher for women (2.2) than for men (1.9).
Likewise, within the total number of debtors with difficult payment capacity, they are 657,581 people who have at least one qualification of unrecoverable debtor. In relation to the total number of registered debtors, represent 34.5%.
Irrecoverable debtors
The BCU study indicates that of the 657,581 people with at least one rating as irrecoverable debtor, some 289,388 (15.2%) They also meet the double condition of having other breaches registered in the database of equifax —former Clearing of Reports.
The median of amounts owed for this group was 52,950 pesos, while the proportion of men classified as irrecoverable debtors was higher than that of women (39% and 35%).
What types of loans are requested in Uruguay?
Another point analyzed in the BCU report was the type of credits taken by Uruguayan debtors. In this sense, the majority of people with records in the CRC as of May (73%) had debts with credit management companies, while 65% had debts with banks. About 42% of debtors have relationships with more than one financial institution.
Among the main reasons why Uruguayan individuals borrowed, the study pointed out that 99.42% presented debts for consumer loans3.7% had mortgage debts and 3.1% debts for car purchases.
“It should be noted that practically all of the people of whom there are records in the CRC are indebted fundamentally to finance consumption needs, representing a little more than three fifths of the amounts owed by individuals. Likewise, less than 6% of the total number of natural persons with records in the CRC have debts for the purchase of automobiles or housing, which shows little development of said markets in relation to consumer credit,” said the study.
Source: Ambito
