Banks in Peru to grant up to $700 million in mortgage loans this year

Banks in Peru will spend this year around 700 million dollars in mortgage loans, which will increase the stock of granted loans, which totaled 2.9 billion dollars in 2007 to 3.6 billion for the closing of 2008, Interbank estimated today.

“The total stock of mortgage loans granted by the banking system in Peru was 2.9 billion dollars at the end of 2007, and it is expected that at the end of this year it will be around 3.6 billion dollars", the general manager of Interbank, Jorge Flores said.

Flores indicated that in 2006 250 million dollars were spent on mortgage loans, but if it is compared to the estimated amount for this year, we can see that the estimated amount of disbursements will be more than duplicated.

However, he stated that that the stock of certain mortgage loans is still low compared to other countries of the region.

Colombia overcomes Peru’s mortgage loans by 50 percent and Peru compared to our Chilean neighbors is eight times lower.

News source: ANDINA