“Mexico's Bank Loans Flat In October At MXN1.889 Trillion - Regulator (Nasdaq)” plus 1 more

---

Mexico's Bank Loans Flat In October At MXN1.889 Trillion - Regulator (Nasdaq) Posted: 26 Nov 2009 12:47 PM PST MEXICO CITY -(Dow Jones)- Mexico's banks reported 1.889 trillion pesos ($ 145.28 billion) in loans on their books at the end of October, nearly unchanged from the year-ago period as a recession crimped lending. Commercial loans grew 3.4% to MXN896.95 billion, while mortgage lending rose 8.5% to MXN307.84 billion, and loans to government bodies surged 32.4% to MXN222.25 billion, according to data published Wednesday by banking and securities regulator CNBV. Consumer loan balances, however, fell 18.3% to MXN397.16 billion, with credit card loans tumbling 24% to MXN235.65 billion. In a positive sign, lending expanded 0.8% compared to the previous month, led by growth in personal, commercial, government and mortgage loans. Mexico's worst recession since the 1995 peso crisis has reduced the both the supply and demand for credit amid high unemployment. Economists expect the economy to contract about 7% in 2009, largely due to a recession in the U.S. earlier this year that reduced demand for Mexico's exports. The unemployment rate was 5.9% last month, down from 6.4% in September, but higher than the 4.1% reported in October 2008. The economic downturn has also made it harder for struggling businesses and consumers to repay their debts. The percentage of nonperforming loans to total loans fell to 3.38% in October from 3.43% the previous month, but was higher than the 3.21% at the end of last year, the CNBV said. The nonperforming ratio for commercial loans to businesses and corporations rose to 2.09% in October from 1.39% at the end of 2008, while nonperforming mortgages climbed to 4.65% from 3.51%. In credit-card loan portfolios, where banks have suffered the highest levels of defaults after several years of easy lending, the percentage of nonperformers continued to decline, falling to 9.63% from a peak of 12.6% in May, and slightly above the 9.37% observed in December 2008. Mexico's banking industry is largely in the hands of foreign institutions following a wave of acquisitions in the 1990s and the first part of this decade. Together, Banco Bilbao Vizcaya Argentaria SA (BBV) and Banco Santander SA ( STD) of Spain, Citigroup Inc. (C) of the U.S., HSBC Holdings PLC (HBC), and Bank of Nova Scotia (BNS) control 68% of total loans and nearly 70% of retail deposits in the banking system. The local subsidiaries of Santander and HSBC have posted the biggest declines in loan balances of the seven largest banks during the recession. HSBC Mexico, which has steadily lost market share, reported a 13.2% drop in total loans to MXN157.12 billion at the end of October, while demand and time deposits fell 9.6% to MXN221.91 billion, according to the CNBV. The bank has been especially hard hit by bad loans this year, especially in credit card lending where it tried to take market share from bigger rivals. Its nonperforming ratio was well above that of the sector at 5.55%. Santander's loan balances tumbled 17.5% to MXN207.56 billion, while demand and time deposits fell 13.8% to MXN247.11 billion. Earlier this year, Bank of Mexico Gov. Guillermo Ortiz criticized foreign- owned banks for cutting back on lending due to the financial problems of their parent companies. -By Ken Parks, Dow Jones Newswires, 52-55-5980-5177, ken.parks@dowjones.com (END) Dow Jones Newswires 11-26-091526ET Copyright (c) 2009 Dow Jones & Company, Inc. This content has passed through fivefilters.org.

Ukraine leader blocks state guarantees for loans (Reuters via Yahoo! Asia News) Posted: 26 Nov 2009 06:10 AM PST KIEV, Nov 26 - Ukrainian President Viktor Yushchenko overturned on Thursday a government decision to guarantee foreign loans worth over $1 billion to four state health companies, scuppering the credit deals. Ukrainian state guarantees have been contentious in recent months. Last Friday European stocks and currencies briefly fell as investors wondered whether a state firm restructuring would translate to a sovereign default if guarantees existed. The answer was no, but the incident showed how Ukraine's economic performance, blighted by a deep recession and constant political infighting ahead of a January presidential election had the ability to touch nerves in Europe. [ID:nLK250699] It is not the first time Yushchenko has blocked guarantees and other decisions made by the government of Prime Minister Yulia Tymoshenko -- his bitter rival in the Jan. 17 poll. Tymoshenko's critics say the loans are a temporary accounting trick before the election as cash would sit in state coffers for months while the state companies launch projects and tenders for which the funding was meant. Tymoshenko in turn criticises Yushchenko for sabotaging the government's work ahead of the poll for his own personal gain. The loans from the United States, South Korea and China were all to be provided by export-import banks aimed at helping Ukrainian health companies buy medicines and equipment. Yushchenko's decree said the guarantees offered brought the total of state guarantees to almost double the 37 billion hryvnias pencilled into this year's budget. ((Kiev bureau; tel: +380 44 244 9150; RM: sabina.zawadzki.reuters.com@reuters.net)) This content has passed through fivefilters.org.

You are subscribed to email updates from Add Images to any RSS Feed To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610