According to data released by the Bank of Jamaica (BoJ) recently, the stock of personal loans declined by 1.3% during the October to December 2009 quarter, following a marginal fall of 0.2% in the previous three months. This was in contrast to average growth of 6.1% for the last five December quarters, and basically reflects the slowdown in consumption expenditure that has occurred here in Jamaica.
In terms of personal loans, credit for the purchase of motor cars declined by 2.4%, following a 1.6% reduction in the previous quarter.
The BoJ says the increase in the rate of decline was influenced by a reduction in household income, as well as a fall off in spending which may be influenced by the government’s announcement of public sector rationalisation.
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