BMI Could Become a First Tier Bank

The Multisectorial Bank of Investments (BMI) of El Salvador may start lending directly to businesses.

Tuesday, June 16, 2009

Set against the credit demands from different sectors, the executive is studying the possibility of reforming the BMI law so that it could lend directly to business owners rather than lending only to other banking companies.

Patricia Palma in her article in Elsalvador.com highlights the comments made by Carlos Acevedo, the president of the Central Reserve Bank (BCR): "We have a serious finance problem regarding the productive sectors, the banking system does not even take into account the applications....Reform to the BMI law would have to pass through the Legislative Assembly, for which a proposal is being drafted and it could be presented next week."

More on this topic

El Salvador: Rules for Productive Loans Made Flexible

February 2015

An extension has been given to the deadline to make payments without affecting credit ratings and there are more flexible requirements for loans up to $350,000, both part of the changes approved by the Central Bank.

From a statement issued by the Central Reserve Bank of El Salvador (BCR):

Guatemala: Private Sector Credit Increases 7.6%

April 2011

While analysts regard the 7.6% increase as low, it at leasts suggests that the economy is slowly recovering.

Loans granted by Guatemalan banks to the private sector seem to be returning to a growth trend. This can be seen from data published by the Guatemalan Central Bank, which shows an increase of more than 7% in banks' credit portfolios.

Credit Grows Slowly in Nicaragua

April 2011

Private sector loans dropped $31 million in February.

The Central Bank of Nicaragua believes this happens because banks are much more cautions when lending.

An article in La Prensa rports that “most loans ($13 million) went to the agricultural sector, while reductions were recorded in commercial and industrial loans, as well as credit cards”.

BANADESA Opens Lines of Credit in Honduras

June 2009

The government has provided the bank with $61 million so that producers and business people have access to credit.

The bank, which only made loans to the agricultural sector, will now also lend to the commercial and services sector.

The Tribune published on its website: "According to government officials, the credit system is being eased in favor of producers and business people to cope with this year’s global economic crisis because the private sector is not doing it."

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