In El Salvador, the usage of this mechanism has increased since 2002 when the Financial Leasing Law, which set clear leasing rules, was approved.
In these times of financial crisis, when access to credit has become more and more difficult for businesses, the leasing of production assets such as transportation, machinery, computer equipment, and full payment with cash rather than increasing debt permits businesses to designate available working capital to other purposes while reducing financial and tax liabilities.
In an article in Elsalvador.com, Alejandro Aparicio, administrator and business manager at Valores Agroindustriales, says that "the culture of leasing is well positioned because now clients are not as concerned with acquiring ownership of the goods that they are using, but rather they will just pay for the use of the asset."
Fitch Ratings has issued a special report entitled, "Central American Banking: After the Crisis, a Disparate Evolution"
In Fitch's opinion the banks have shown a mixed performance in Central America during the period of the global financial crisis. At the same time, banking systems have dissimilar perspectives on future performance, reflecting different economic growth prospects in the region.
From abundance to scarcity: Challenges faced by Central American banks in an
environment of tight liquidity.
After having been hit hard by the US mortgage crisis in 2008, large US and international banks have considerably weakened, in some cases escaping from bankruptcy only thanks to strong government intervention.
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