Este informe no está disponible en español. CARIBBEAN BUSINESS Small Lending Declines In 1Q 2001: Financieras Cut Back Their Own Borrowing To Lend BY LIDA ESTELA RUAÑO July 26, 2001 Copyright © 2001 CARIBBEAN BUSINESS. All Rights Reserved. A Commissioner of Financial Institutions report on the performance of small loan institutions–those having a $5,000 lending cap–reveals that the first quarter (1Q) 2001 was their worst or second-worst in the last five-quarter period in terms of total money loaned out, with an industry-wide $13 million drop from $1.137 billion in 4Q 2000 to $1.124 billion in 1Q 2001. The report covering the nine financieras on the island shows that most registered a drop in total current assets and also that most cut their own borrowing (to procure their own funding). Un informe del comisionado de las Instituciones Financieras sobre el rendimiento de pequeñas instituciones prestamistas –aquéllas que tienen un capital para préstamos de u$s 5,000– revela que el primer trimestre (1Q) de 2001 fue en el último período trimestral su peor (o su segundo peor) en términos de sumas totales prestadas en dinero, con una declinación en todo el campo industrial de u$s13 millones de dólares: de $1.137 billones en el 4º trimestre de 2000 pasó a u$s1.124 billones de dólares en el primer trimestre de 2001. El informe que abarca a las nueve financieras de la isla muestra que la mayoría ha registrado una declinación en el total de los activos corrientes y también que la mayoría corta su propio capital de giro (para procurarse sus propios fondos). Total industry assets were $2.236 billion in 1Q 2001 vs. $2.258 billion in 4Q 2000. Industry-wide loans–to secure their own funds–from banks were $948.6 in 1Q 2001 million vs. $1.185 billion in 4Q 2000. Loans from parent companies were also lower, $89.3 million in 1Q 2001 vs. $91.4 million in 4Q 2000. Bad debts were the highest in a five-quarter period, $10.1 million in 1Q 2001 vs. $3.5 million in 4Q 2000. The sharp drop in interest rates saved the day for the total expenses segment making it the lowest of all five quarters, $20.8 million vs. $78.4 million. The largest of the financieras, Island Finance P.R. Inc., had 1Q 2001 loans & leases totaling $381.2 million vs. 4Q 2000 $387.6 million, the lowest figures in the last five quarters. Total assets were $909.4 million in 1Q 2001 vs. $916.1 million in 4Q 2000. The company had the lowest figures for its own loans from banks, which were $117.8 million in 1Q 2001 vs. $341.4 million in 4Q 2000. The second largest financiera, Associates Financial Services, had its second lowest quarter in loans & leases of $348.9 in 1Q 2001, although a hair higher than 4Q 2000’s $348.8 million. Total assets were lower, $806.9 million in 1Q 2001 vs. $819 million in 4Q 2000, as were loans from banks for its own funding, $611.6 million in 1Q 2001 vs. $626.4 million in 4Q 2000. Third-largest small loan institution Popular Consumer Inc. had $118.3 million in 1Q 2001 loans & leases vs. $122.3 million in 4Q 2000. Although total current assets were lower, $108.1 million in 1Q 2001 vs. $112.6 million in 4Q 2000, total assets were higher at $217.1 million vs. $215.1 million, respectively, as were loans made to banks at $185.4 million vs. $183.8 million and liabilities at $189.8 million vs. $187.4 million. This Caribbean Business article appears courtesy of Casiano Communications. For further information please contact www.casiano.com Self-Determination Legislation | Puerto Rico Herald Home Newsstand | Puerto Rico | U.S. Government | Archives Search | Mailing List | Contact Us | Feedback