El Salvador: Credit for construction sector denied

The IDB and the World Bank denied the loan requested by the Salvadoran Chamber of the Construction Industry for the development of 15 projects.

Tuesday, January 27, 2009

Elsalvador.com reports: "At the onset of the project, the entity had programed $30 million to start the project. Now the Chamber is once again seeking funds to reactivate the sector. "Unfortunately, up to now the sector continues to be in the same situation as previously; I even mentioned that we had a project with the multilateral bank, but that project did not work out, they said no...however we continue to look for working alternatives to get credit," said the president of the group, Mario Rivera."

More on this topic

Salvadoran Developers Look Abroad for Loans

July 2010

Faced with restrictions on local credit availability, 10 projects are looking to foreign banks for finance.

Mario Rivera, president of the Salvadoran Construction Chamber (Casalco), commented that it is not yet possible to access credits from the guarantee fund set up through a trust by the Multisectorial Bank of Investments (BMI).

El Salvador: Construction After Banking Flexibility

April 2009

In the absence financing solutions, the construction union sector initiated meetings with private banks.

The Salvadoran Construction Industry Chamber (CASALCO) is not seeking massive loans, but more flexibility in granting credit.

La Prensa Grafica published on its website: According to Nolasco, the hope is to find new funding mechanisms in private banking, as well as to know what the requirements are to gain access to resources. Earlier this year, several construction companies went to the the Multisectoral Investment Bank (BMI) to look for financing mechanisms that would allow the development of 11 housing projects that needed an investment of $70.1 million, of which $31 million was expected to be obtained from the second-tier bank."

Salvadoran builders unable to sell homes

December 2008

With a few days left before the end of 2008, there is concern about the inventory and little or no sale of houses in the market due to the credit restriction.

Mario Rivera, president of the Salvadoran Chamber of the Construction Industry (Casalco), added that the companies still have apartments or houses and that "they are unable to sell them because there is no financing for family," and therefore run the risk that the builders will not be able to fulfill their commitments with the banks.

Salvadoran Construction Chamber negotiates $50 million

December 2008

Ismael Nolasco, general manager of the Chamber, reported that the group is negotiating financing as a alternative fund for the reactivation of the sector.

The representative added that a draft financing project has been made with the International Investment Corporation of the IDB and with the World Bank.

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