The ceiling on the growth of the loan portfolios imposed on Costa Rican banks has forced financial institutions to adjust their lending strategies.
Elfinancierocr.com reports that "The Central Bank of Costa Rica (BCCR by its initials in Spanish) established a ceiling of 9% on the growth that credit loans might have between February and October this year. In 12 months, the figure will rise to 12%. "
Since the fourth quarter of 2008, credit extended by banks has been declining consistently.
An analysis published by the Salvadoran Foundation for Economic and Social Development reads:
“This decline has various interpretations, from suggestions that it is the result of reduced demand due to the lack of investment opportunities, to the internationalized banking system’s lack of identification with the needs of local businesses. Regarding the first scenario, this is a very limited conclusion and the second case offers an interpretation that doesn’t have an economic foundation.
The export and industrial sector in the country has indicated that market conditions have worsened.
"We are now feeling a reduction in credit access, with the consolidation of the banks there is now a restrictive policy, and the international financial crisis is causing more credit to be closed due to the demand for capital in other markets," Jorge Arriaza, executive director of the Salvadoran Industrial Associacion (ASI), manifested.
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