Increasing Indebtedness, Institutional Change and Credit Contract in Peru

40 Pages Posted: 19 Apr 2011

See all articles by Carolina Trivelli

Carolina Trivelli

Instituto de Estudios Peruanos - IEP

Javier Alvarado

affiliation not provided to SSRN

Francisco Galarza

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

Date Written: December 1999

Abstract

This paper reviews the main causes of the rapid growth of credit in Peru during the 1990s. The creation of new types of lending intermediaries besides traditional banks has allowed debt to increase and credit to be extended to new classes of borrowers such as middle and lower-class urban residents. Improvements in information-sharing, borrower selection and the range of public and private arrangements available have further aided the expansion of credit. Evaluating several case studies, the paper concludes that credit growth remains limited by inefficient judicial enforcement procedures and insufficient information on borrowers` credit risk.

Suggested Citation

Trivelli, Carolina and Alvarado, Javier and Galarza, Francisco, Increasing Indebtedness, Institutional Change and Credit Contract in Peru (December 1999). IDB Working Paper No. 111, Available at SSRN: https://ssrn.com/abstract=1814656 or http://dx.doi.org/10.2139/ssrn.1814656

Carolina Trivelli (Contact Author)

Instituto de Estudios Peruanos - IEP

Av Horacio Urteaga
Distrito de Lima, 15072
Peru

Javier Alvarado

affiliation not provided to SSRN

Francisco Galarza

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

427 Lorch St.
Madison, WI 53706-1503
United States

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