El Salvador: Construction Stalled by Lack of Funding
There are 19 housing projects which would generate about 2,400 houses in different market segments that are stagnant.
Thursday, March 5, 2009
Ismael Nolasco, executive director of the Salvadoran Construction Industry Chamber (CASALCO) detailed in Elsalvador.com: "Eleven projects are already in the process of analysis in the Multisectoral Investment Bank (BMI), which is responsible for "banking" the projects, meaning that it looks for funding options. It is estimated that the implementation of these housing projects, in all its stages, would require $120 million. However, only $30 million are needed to launch the first stage."
In the absence financing solutions, the construction union sector initiated meetings with private banks.
Ismael Nolasco, general manager of the Chamber, reported that the group is negotiating financing as a alternative fund for the reactivation of the sector.
Salvadoran home builders welcomed President Funes's announcement, that turns into reality the long awaited anti crisis plan for the sector.
Up to June banks had only provided financing for housing projects worth $14.36 million, while in the same period last year it had already reached $32 million.
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