"Victor Ramírez, superintendent of the financial system, stated that excess liquidity is due to many sectors not accessing credit", reported Laprensagrafica.com. "Banks are currently assessing the level of risk in the country".
Despite the measures adopted by the Executive to guarantee liquidity, the price of money continued to rise in December.
Elsalvador.com reports: "During the last of quarter of 2008 the interest rate for one year loans increase by one point to 9.58%, according to figures by the Central Reserve Bank (BCR), while for loans for more than a year, it grew 0.65%, to 10.46%.
The volume of total deposits accounted for 50% of GDP and becomes mostly government debt.
El Nuevo Diario reports, "in that sense, the Central Bank managed not only to extract resources from the economy, but also strengthened the country's international reserves, while private financial institutions also bought government securities, instruments used to finance the nation´s deficit."
ABANSA believes that the cost of accessing the $500 million made available with IDB funds is too high.
Armando Arias, president of the group said that the rate of the funds corresponds to the LIBOR plus 400 base points more in commissions and is practically the same as the rates offered by other international lenders.
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