Summary
• In July, the broadest monetary aggregate in pesos (M3) showed a growth of 2.7% and maintained its year-on-year variation stable at around 22%. The monthly increase was mainly explained by the working capital held by the public and deposits in private sector savings banks; these grew favored by seasonal factors associated with winter vacations and the receipt of the complementary half annual salary.
• The liquidity in local currency of financial institutions (sum of cash in banks, the current account of entities in the Central Bank, net passes with such entity and the holding of LEBAC and NOBAC) remained stable, at 37.2% in terms of deposits.
• In July, loans in pesos to the private sector increased 1.1% ($5,280 million), driven by lines with essentially commercial destinations. The growth rate for the month was similar to those of May and June, while the year-on-year variation stood at 22.7%. In the month, the performance of financing through advances was highlighted, which registered an increase of 6.3% ($4,130 million), the highest in the last twelve months and similar to that observed in July in other years.
• With regard to the measures adopted by the Central Bank to promote credit to the productive sector, the fifth stage of the Credit Line for Productive Investment (LCIP) began in July. As for the fourth stage of the LCIP, which was carried out in the first half of 2014, loans for 90% of the goal established for that period would have been agreed until May, according to preliminary information. On the other hand, the Central Bank continued to disburse funds within the framework of the Bicentennial Productive Financing Program, through which it has already directed $6.568 billion to long-term investment projects.
• In July, interest rates paid by financial institutions on their fixed-term deposits continued to decline. In particular, the BADLAR of private banks averaged 22%, with a monthly decrease of 1 p.p. Likewise, in the retail segment, the monthly average of the interest rate paid by private entities for fixed-term deposits of up to $100,000 and up to 35 days stood at 19.3%, 0.8 p.p. below the June level.
• Interest rates applied to loans in pesos to the private sector fell in those associated with commercial lines and personal loans. In particular, the monthly average interest rate on current account advances stood at 30.7%, decreasing 1.5 p.p. in the month, while the interest rate on personal loans averaged 37.4%, falling 3.1 p.p. compared to June. On the other hand, the interest rate on collateral loans increased 0.8 p.p., to 23.9%.
