Cooperative loans down by 50%
PANAMA. Panamanians are becoming more cautious about borrowing money and fewer people are requesting loans from banks, and cooperatives...
PANAMA. Panamanians are becoming more cautious about borrowing money and fewer people are requesting loans from banks, and cooperatives (credit unions) than before.
The President of the National Council of Co-operatives, Dionisio Vergara said that there has been a drastic reduction in the number of people requesting loans, as much as 50 percent, which is a worrying trend, because co-operatives need to lend money in order to survive.
People are worried about the global financial crisis and how it will affect them in the long term. Furthermore, said the president, the high cost of the basic food basket has made people more cautious about their money and they are preferring to cut down unnecessary expenses, said Vergara
However, on a brighter note, the saving co-operative are doing well, especially those directed to the younger age group and it is expected that they will continue to multiply, especially in the provinces, giving an alternative to lower income people.