Credit Sales: Consumers More Likely to Indulge

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Mauritians are more likely to get into debt, according to credit card companies and fi nancial institutions.

According to some specialists fi nancial, Mauritians are sinking into a debt spiral. "Some retailers encourage consumers to buy credit only in order to boost their sales," says an analyst.

" This, even if tomorrow these traders will be forced to use other means to force them to honor their commitment " , he adds.

Expenses related to the consumer, in fact, increased from one year to another. They rose from Rs 249 billion in 2009 to Rs 300 billion by 2012.

In 2010, they amounted to Rs 262 billion in 2011 and Rs 280 billion. These are banks domiciled in Mauritius, with local ownership, which provide the bulk of loans to households.

The side of the Bank of Mauritius (BoM), we confi rm figures to support that household debt is rising. Credits that were allocated in March amounted to 18.2% of gross domestic product, or Rs 55 billion.

This represents an increase of 1.4 points compared to the same period last year. Loans to households are mainly housing loans and those for consumption, we expliquet the BoM. End of June, mortgages accounted for 60% of loans to households.

However, Cyril Chung, Director of Cim Finance, which offers credit sales through the retail chain Galaxy and JM Pin, believes that "consumers are now more cautious and responsible in making their purchases. " Preferring to buy useful. Because " they know that tomorrow can be difficult . " Especially since the average Mauritius does not have a high purchasing power.

" This inevitably reduces its flexibility in terms of its possibilities. This, even though it is tempting to buy on credit. "An opinion shared by Swadicq Nuthay economist and Director at Axys Group. He explained that the behavior of Mauritians has changed. They prefer, according to him, saving instead of investing in consumer goods. And he says, " commercial banks are cautious when it comes to granting credit in periods of economic downturn " .