About 150,000 people have re-entered category five of the Central Bank of Uruguay, the lowest credit rating level.

Some have gotten out of the problem, but there are also many who have entered, admitted Barbara Mainzer, executive director of the Association of Private Banks of Uruguay.

In 2023, this association launched a debt forgiveness and restructuring program that benefited thousands of clients, the Ambito website reported.

The executive director explained that such a total credit in Uruguay represents 29 percent of the Gross Domestic Product (GDP), a low figure in international comparison.

According to Mainzer, 16 percent of the loans go to businesses and 13 percent to families, indicating that there is no problem of aggregate over-indebtedness, although there are worrying cases at the individual level.

Regarding the debt restructuring program launched in 2023, she said it was “successful.”

More than 204,000 people participated and were able to cancel or refinance their debts, she emphasized, although she stressed that the experience is not expected to be repeated.

When asked about the causes of over-indebtedness, Mainzer did not hesitate: “The number one problem is employment: low and unstable income.”

She also mentioned “problems with financial education and a lack of more precise information tools to differentiate risk profiles.”

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