84688
Household debt reached its highest level in a decade.
Household debt reached its highest level in a decade.

Personal Loans in Jamaica Climb to $308b

Personal Loans in Jamaica Climb to $308b

Jamaican households are increasingly living beyond their means as more than half of their disposable income goes towards paying back loans, a trend that concerns the financial stability committee enough for it to consider studying its drivers.
Household debt reached its highest level in a decade, with more than half of disposable income—that is, $54.20 of every $100—going towards the servicing of personal loans, as at last September, according to the Fiscal Stability Report 2017 released by the central bank this month, Jamaica Information Service News reported.
Last year, the ratio of real household debt to disposable income deteriorated at 54.2% was trending well above the 10-year annual average of 42.9%, said the report.
In the most recent breakdown of loans issued by commercial banks, personal loans are at the highest level they have ever been, according to provisional data compiled by the Bank of Jamaica.
As of January 2018, the loan market in the commercial banking sector was valued at $616 billion, with personal loans accounting for $308 billion of the industry total. One of the drivers of the trend has been reported to be increasingly attractive auto loans that are now priced at single-digit rates.
A decade ago, the year-end ratio was 38%, and the decade before that it was 19%, according to central bank data.
The debt servicing burden of households has generally trended upward since 2011, the stability report noted. It also noted that the stable macroeconomy as well as the government of Jamaica’s reduced need for debt—eliminating its crowding out effect—has created an opportunity for expansion of private sector credit.

Short URL : https://goo.gl/KSAH6v
  1. https://goo.gl/ErpnUV
  • https://goo.gl/vk9Ztf
  • https://goo.gl/QE8sZv
  • https://goo.gl/TPsRa8
  • https://goo.gl/t9KNzY

You can also read ...

World Stocks Stumble as US Yields Near 3% Barrier
World stocks slipped on Monday as investors braced for a...
Asean: Reconciling Consensus With New Realities
Asean’s rapid expansion in the 1990s further deepened...
Retail sales in Vietnam rose nearly 11% last year to $129 billion.
Vietnam is set to remain the fastest-growing major country in...
DXB Entertainments, the operator of Legoland Dubai, last month announced the restructuring of $1.1 billion worth of debt.
There has been an uptick in recent months in heavily-borrowed...
Angola Growth Revised Upwards
Angola’s economy is expected to grow by 2.2% this year and 2.4...
Germany’s industrial production, exports and retail sales declined in the first quarter, signaling that growth had slowed down.
The outlook for business activity in Germany’s private sector...
Slightly weaker data on industrial production, retail sales and construction suggest the eurozone is going through a period of slightly lower economic growth  in the first months of 2018.
When will the European Central Bank join the US Federal...
Truth and Transparency Key to Rebuilding Trust
The International Monetary Fund welcomed calls from the US...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus