The banking sector requested that the term for the temporary measure of providing liquidity in US dollars via repo transactions be extended.
Sigloxxi.com reports that "Jose Angel Lopez Camposeco, president of the Banking Association of Guatemala (ABG) and the Rural Development Bank (Banrural), commented that the measure worked, "because it is an instrument which gave signals that in case of any need for or suspension of credit, we have resources available."
Between January and July 2009, the liquidity of Honduran Banks grew 242%, from $1.05 billion to $2.45 billion.
60% of available funds are in Lempiras, the national currency, while the remaining 40% are in dollars.
Such growth was a result of monetary policies by the Central Bank of Honduras, who increased the amount of money in the economy by removing some obligatory investments on deposits, and reducing and eliminating reserve requirements.
Responding to the international financial situation the Panamanian Bank Superintendent's Office has decided to adopt temporary measures.
According to Resolution 8-October 31, 2008; at the request of a bank, the Superintendent's Office may approve a resolution to the effect that obligations issued by the Panamanian government, US Treasury bonds and notes and Latin American government debt within its investment portfolio be transferred from the category of securities available for sale to the category of term securities.
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