NASSAU, BAHAMAS — Banks wrote-off an estimated $31.4 million in delinquent loans in the second quarter, according to the Central Bank.
The regulator in its quarterly economic review for June 2020 noted the true impact of the COVID-19 pandemic on the sector remaining delayed due to the implementation of loan deferral schemes.
According to the Central Bank’s data, “total private sector loan arrears declined by $52.0 million (7.6 percent) over the three-month period, and by $51.2 million (6.9 percent) year-on-year, to $635.9 million. Correspondingly, the ratio of arrears to total private sector loans narrowed by 88 and by 92 basis points, on a quarterly and annual basis, respectively, to 11.3percent.”
The regulator said: “The quarterly reduction in total private sector loan arrears was attributed to broad-based declines across all the loan categories, reflecting the deferral in loans payments for persons and businesses impacted by the COVID-19 pandemic.
“In particular, the consumer component fell by $22.5 million (11.3 percent), to $177.2 million, with the associated ratio narrowing by 91 basis points to eight percent. Similarly, mortgage arrears reduced by $22.5 million (5.4 percent) to $397.4 million, with the corresponding ratio declining by 82 basis points to 15.2 percent. In addition, commercial delinquencies decreased by $6.9 million (10.2 percent), to $61.3 million, resulting in a 98 basis point softening in the relevant ratio to 7.4 percent.”
According to the regulator, banks wrote-off an estimated $31.4 million in delinquent loans and recovered approximately $3.4 million, over the three month period.
