Peruvian microfinance entity Caja Rural de Ahorro y Crédito Los Andes S.A. bought three credit portfolios totaling 68 million Peruvian soles from Caja Municipal Del Santa in November, SEMANAeconómica reported Dec. 8, citing Caja Rural Chair Rosanna Ramos-Velita.
The deal, which marked the first time a rural savings bank has bought loans from a municipal savings bank, took under three months to be completed, Ramos noted.
The executive added that although one of the portfolios that was acquired has a relatively high delinquency rate of 17%, the company performs due diligence and analyzed the risk quality to minimize the chances of a potential default.
With the purchase, Caja Rural's portfolio totals 388 million soles as of November 2017, from 188 million soles in November 2016, the report noted. The entity is expecting growth of between 20% and 25% for 2018.
As of Dec. 8, US$1 was equivalent to 3.24 Peruvian soles.