Costa Rica: Banks restrict housing credit

Because of fluctuations in the exchange and interest rates there is more reluctance to provide financing.

Thursday, August 7, 2008

After a period of credit surplus and very attractive financial conditions for borrowers, financial entities are now taking a more conservative position with regard to risk, and, in many cases, reducing the amounts that are financed through bank loans.

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Mortgage Loans Increase by 6.5%

December 2011

The Panamanian Credit Association reported that in October there were a total of 204,000 active mortgages, 6.46% higher than in the same month in 2010.

Meanwhile the balance of the total outstanding mortgage loans on the same date (October 2011), increased by 19.48%.

"This year, banks have begun to further consolidate their participation in relation to mortgage loans.

Preferential Mortgages Extended by 5 Years

December 2011

The Panamanian government has extended for another five years preferential mortgage loans previously registered with the Department of Revenue.

A press release from the Ministry of Economy and Finance of Panama reads:

Preferential mortgage loans previously registered with the Department of Revenue of the Ministry of Economy and Finance, are to be extended for five more years, as was established by Act 8 of 2010 and as has been regulated by Executive Decree # 539 of 30 November 2011. The standard applies to loan contracts which are in the first ten years of their term at the date when the regulation becomes effective.

Housing credit drops 23% in El Salvador

January 2009

From January to November 2008 13,780 loans were granted, compared to 17,938 in 2007.

The Salvadoran Chamber of the Construction Industry (Casalco) said in their report, according to elsalvador.com: "The number of loans for home construction decreases 45.6%, since in 2008 only 189 home loans were granted compared to 2,187 in 2007.

State Loans for Real Estate Developers

May 2012

A regulatory amendment empowers the National Housing Institute of Costa Rica to grant mortgage loans to legal persons.

Regulation Law 8448, of the National Housing Institute (INVU) allows loans for housing to be granted exclusively to individuals who are heads of household.

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