Non-performing loans in Mexico are growing at a worrying pace. Despite official estimates putting consumer NPLs at 5.8% of the total consumer loan market, some analysts believe that real levels are in double digits already.
“There are a growing number of consumer loans ending up as NPLs in Mexico. This emerging trend is the result of increasing over-indebtedness,” says a loan financial specialist in Mexico. “Although this indebtedness is still lower than in places like the US and UK, it is reaching a worrying level for Mexico.”
He adds: “A couple of banks have recently sold NPL portfolios that have been made up of defaulted consumer loans but the individual loans are for small amounts and so these portfolios aren’t worth much.
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