October18,
2004
Venezuelan September
bank lending jumps for 8th month
(Bloomberg) - "Venezuela's
banks and financial institutions boosted
lending for an eighth month in September,
a signal that the country's economic recovery
may be gathering force.
Lending
by Venezuela's 49 banks and financial
institutions rose 6 percent to 16.8
trillion bolivars ($8.8 billion) in
September from 15.8 trillion the previous
month, according to figures from the
Softline banking consultancy. Lending
has jumped 61 percent through September.
'We are seeing real credit demand from
the economy,' Banco de Venezuela SA
(Santander Group) President Michel Goguikian
said at an investment conference in
Caracas on October 6.
The South American country's
economy is expected to grow by at least
10 percent this year as political tensions
ease after President Hugo Chávez
won an August. 15 recall vote, Planning
Minister Jorge Giordani said in August.
Gross domestic product jumped 23 percent
in the first half of the year as the
economy recovered from a two-month national
strike that ended in February 2002 and
crippled oil production.
Demand for consumer credit
has risen by 24 percent this year, while
small companies have increased borrowing
by 56 percent, Goguikian said.
'There is an excess of liquidity, which
has created competition for lending
among banks,'' Goguikian said. Falling
interest rates have also boosted demand,
he said.
Deposits rose for a fifth month, climbing
2.8 percent to 36.2 trillion bolivars.
Deposits have risen 26 percent this
year.
Banco de Venezuela
is the country's third-largest bank,
according to assets, trailing Banco
Mercantil and Banco Provincial SA, Softline
said".
