$200 Million need by Salvadoran industries

The Association of Industrial Companies (ASI) indicated that it will need at least $200 million to reactivate the industry and investments that have been paralyzed due to lack of credit.

Friday, December 5, 2008

The proposal was made by the executive director of ASI, Jorge Arriaza, who pointed out that they are concerned about comments by the Salvadoran Banking Association (Abansa) which complained that credit from the Inter-American Development Bank (IDB) for 500 million dollars was too expensive and had short terms, in addition to the fact that certain sectors would not have greater access to the funds.

More on this topic

$500 million for Salvadoran financial sector

November 2008

In an unprecedented move since the dollarization of the country's economy, the BCR will inject ready money into the local financial sector.

The IDB approved an operation for the Central Reserve Bank to buy a credit portfolio totalling $500 million from banks giving them more liquidity to support the production sector.

Salvadoran Banks ask for lower credit rate from the IDB

December 2008

ABANSA believes that the cost of accessing the $500 million made available with IDB funds is too high.

Armando Arias, president of the group said that the rate of the funds corresponds to the LIBOR plus 400 base points more in commissions and is practically the same as the rates offered by other international lenders.

Designation of $500 million in El Salvador still undefined.

December 2008

The system of designation for the IDB loan of $500 million is still under discussion by the authorities of the Central Reserve Bank.

The president of the institution, Luz Maria de Portillo, said that the Board of Directors is still dealing with the matter.

Meanwhile, the productive sectors have expressed their expectation that the funds will be channeled as soon as possible since the funds will help to inject capital into the local economy and to reinvigorate it.

Warning about credit restriction in El Salvador

September 2008

The export and industrial sector in the country has indicated that market conditions have worsened.

"We are now feeling a reduction in credit access, with the consolidation of the banks there is now a restrictive policy, and the international financial crisis is causing more credit to be closed due to the demand for capital in other markets," Jorge Arriaza, executive director of the Salvadoran Industrial Associacion (ASI), manifested.

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ACEII

The objetive of Costarican Association of Students of Industrial Engineering and Related Careers is to formalize the communication channels between students of industrial engineering and related careers, to promote integration and professional growth.
Operates in Costa Rica
Phone: (506) 8892 1000 - (506) 2296 1000

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