Bank credit to Uruguay's agricultural sector reached a new all-time high of approximately US$ 4.09 billion in May, according to the latest monthly data published by the Central Bank of Uruguay (BCU). Compared to the same month last year, total lending increased by US$ 170 million.
Despite the higher level of borrowing, the share of non-performing loans has not increased. As of the end of May, overdue loans totaled approximately US$ 53 million, equivalent to 1.3% of total agricultural lending, the same ratio as a year earlier.
For the livestock sector, outstanding loans from Banco República (BROU) and private banks totaled US$ 1.262 billion, about US$ 66 million more than a year earlier. The amount of overdue loans remained stable at US$ 19 million, representing 1.5% of total lending to the sector.
In the meatpacking industry, outstanding bank debt stood at US$ 506 million at the end of May, with non-performing loans accounting for 1.5% (US$ 7.8 million). Financial debt fell to a low of US$ 476 million in March but increased again over the following two months, once again exceeding the US$ 500 million mark. Compared to a year earlier, financing to meatpackers increased by about US$ 84 million, while the delinquency rate was cut in half, falling from 2.9% to 1.5%.
