Summary
The broad monetary aggregate (private M3) at constant prices showed a downward trend so far this year. In April, it would have registered a decrease of 1.1% in real terms and adjusted for seasonality (s.e.). In terms of its components, time deposits continued to be the only factor of expansion. This dynamic was reflected in a significant and sustained increase in the relative share of forward instruments.
In April, the monthly growth rate of time deposits would have been 0.9% s.e. at constant prices, a record similar to that of March. In year-on-year terms, term placements reached a growth of close to 28%, which implied an increase of 7.4 p.p. compared to last month. The acceleration in the year-on-year rate of expansion was mainly explained by the low base of comparison.
Distinguishing fixed-term deposits by amount stratum, it can be seen that the boost came from placements of more than $1 million. The segment denominated in UVA continued to be the most dynamic, in a context in which the performance of these instruments exceeds that of placements in pesos. Although their share of the total is limited, they continued to gain relative share. Specifically, in April, traditional term placements grew at an average monthly rate of 15.5% nominal. Meanwhile, placements with early cancellation option registered an average monthly increase of 27.6% nominal.
Loans in pesos to the private sector, in real terms and without seasonality, would have registered a contraction of 2.8% in April. The slowdown in lending continued to be explained almost entirely by the evolution of commercial lines. When we analyze the evolution of financing by type of debtor, it can be seen that the fall was concentrated in the large company segment. In fact, commercial lines to this type of legal entities registered a year-on-year drop at constant prices of 26.2%, while those aimed at MSMEs exhibited an expansion rate of 37.9% y.o.y.
The Financing Line for Productive Investment continued to be the main vehicle used to channel commercial credit to MSMEs. At the end of April, loans granted under the LFIP totaled approximately $509,000 million, which implies a growth of 24% compared to the end of March. As for the destinations of these funds, around 82% of the total disbursed corresponds to the financing of working capital and the rest to the line that finances investment projects.
