Large Cooperative Delinquency Holds At 8.3% As Microcredit Stress Persists

Credit exposure

Ecuador has 394 savings and credit cooperatives, of which 44 are classified as large because they hold assets above USD 80 million.

Those segment 1 cooperatives dominate sector credit. Through May 2026, Ecuador's cooperative sector held a total credit portfolio of USD 20.288 billion. Large cooperatives represented 78% of that portfolio, according to the Superintendency of Popular and Solidarity Economy.

Delinquency trend

Delinquency in large cooperatives was 6.42% in June 2023. The indicator rose from February 2024 and crossed the 8% threshold during the recession period.

By June 2026, delinquency in large cooperatives stood at 8.3%, still above pre-recession levels.

Edgar Penaherrera, manager of Icored, said the recovery has been difficult because the recession hit many one-person businesses, a segment heavily served by cooperatives.

Segment pressure

Microcredit remains the most stressed credit category. In June 2026, delinquency in large-cooperative microcredit reached 10.81%.

Consumer-credit delinquency was 7.24%. The source report notes that consumer credit carries the largest weight in cooperative loan books, while microcredit is tied more directly to entrepreneurs and small businesses.

Penaherrera cited the 2024 recession, heavy winter conditions on the Coast, and extortion against small merchants as persistent pressures on microcredit borrowers.

Borrower profile

Credit expansion before the downturn was aggressive. Between August 2021 and May 2023, credit in the largest cooperatives grew monthly at annual rates above 20%.

Cooperatives also have a distinct borrower base. Penaherrera said 55% of cooperative clients are in cantons with higher rurality and poverty. Average credit scores also differ: in May 2026, cooperative clients averaged 896 points, compared with 928 for bank clients.

Credit growth has since cooled. In 2026, the sector's credit expansion has been slight, around 2%.

What to watch

• Whether segment 1 delinquency breaks below the 8% threshold
• Whether microcredit improves from the 10.81% June level
• Whether coastal climate shocks or extortion keep pressuring small borrowers
• Whether slower credit growth stabilizes portfolios or constrains household and microenterprise liquidity

Source: Primicias.