$145 Million Freed to Banks in El Salvador

With the backing of the Financial System Superintendent, the Central Reserve Bank began to release half of the additional reserve of $290 million.

Thursday, April 23, 2009

Due to the celebration of the recent presidential elections, an additional reserve of 3% had been established, with the anticipation of money withdrawals and capital flight.

Laprensagrafica.com reported statements by Armando Arias, president of the Salvadoran Banking Association: "They are already in the process of receiving this money. What we're doing is increasing the availability to provide more liquidity to finance the productive sectors."

More on this topic

$290 Million to be Returned to Salvadoran Banking

March 2009

Banks in El Salvador will receive $290 million that where frozen as a liquidity reserve.

The Salvadoran Central Reserve Bank (BCR) had implemented a liquidity reserve of 3% of all deposits as protection against capital flight during the last presidential election.

According to what Daniel Choto wrote in elsalvador.com, the BCR will begin returning the money gradually, freeing $58 million every fourteen days, in 5 installments.

Salvadoran Banks Request Release of $261 million

March 2009

The Salvadoran Bank Association will request the SSF to release the $261 million imposed due to the elections.

In late 2008, the Financial System Superintendent (SSF) ordered a 3% increase in liquidity reserves which were at 25% for the protection of deposits if there was a bank run. This increase represented $261 million for the banks which will request for the money to be released as soon as possible.

Banking Legal Reserve Requirements Reduced in Nicaragua

February 2011

The Central Bank announced that the daily legal reserve requirement will now be 12%, while it now stands at 16.25% weekly.

According to Antenor Rosales, president of the Bank, financial institutions must maintain a minimum reserve of 15% biweekly and a daily minimum reserve of 12%.

$450 million for Guatemala banks

November 2008

Monetary authorities are pushing more actions to provide liquidity to the banking system.

A total of $450 million (Q3,460 million) will flow into the economy during the next few days, as result of the explication of measures to provide the banking system with liquidity.

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Organization that operates in Costa Rica, El Salvador, Guatemala and Panama.
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