Plastic cards won't be issued in 2009?

Resources state that banks are going to be more careful on issuing plastic cards next year, due to rising unpaid credit card bills.

CCAP data showed that the number of cards in circulation has risen to about 6.5 million in September from 5.5 million in December 2007. 

Recent Bangko Sentralng Pilipinas (BSP) data had provided information on banks’ credit card receivables growing by approximately 25% annually to P104.38 billion as of October. Moreover, the data also showed nonperforming credit card receivables that have been rising by 11.6% in June while in the previous quarter the rate made 10.2%.

On the other hand there is information that Filipinos are not going use plastic cards less, because of the tight situation with cash. Specialists are concerned that the situation might result in unemployment and, naturally, slow income growth for banks.

Credit card players have said they will choose carefully among their credit card applicants ? but remain optimistic their credit card business would continue to grow.

In 2009 Philippine economy is expected to grow only by 3-4%. Consequently, credit card business growth is expected to contract largely.