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Consumer loan repayments up $8.8 million

Consumer loan repayments picked up by$8.8 million during the first nine months for the year according to the Central Bank of The Bahamas.

The improvement could be a sign that Bahamians are in a better position to handle their monthly commitments to the banks.

The figures were revealed in the Central Bank’s Monthly Economic Financial Developments report for October, which revealed repayment improvements in almost all loan types.

“You want to hold on to your most important assets,”Former Minister of State for Finance James Smith told Guardian Business yesterday.

“You might walk away from a consumer loan that you borrowed for a vacation but when[banks]are holding collateral you try to make those payments.”

“A disaggregation of consumer lending for September–the latest data available–revealed broad-based net repayments in nearly all loan categories, as consumers continued to reduce their outstanding debt,”the report said.”The most significant reductions were registered for private cars($3.6 million), home improvement loans($2.7 million), and land purchases($2.0 million).”

Net repayments were also recorded for credit cards and travel of$1.6 million and$1 million respectively, while debt consolidation loans which consisted of restructured credit rose by$8.8 million after a$5 million decrease in 2009.

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