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.
Regarding the total financing granted, the report says that for housing the banks granted $10.65 million, that is 55.9% more than in 2007, when $6.83 million was granted.
Because of fluctuations in the exchange and interest rates there is more reluctance to provide financing.
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.
Until September there was a reported growth of 6.87%, less than the 12% of 2009 and the 25% of 2008.
According to the Superintendence of Banks, from January to September 2010 total mortgage loans totaled $ 2.07 billion.
Mauricio Alvarez, strategic planning manager of Banco de los Trabajadores, told Prensalibre.com, "The economy has barely recovered and the most affected sector has been construction, so one of the reasons for this behavior is a lower housing demand."
In February credit for the construction sector reported a growth of 38.22%.
According to the Salvadoran Chamber for the Construction Industry (Casalco), the industry obtained between the months of January and February about $79 million in loans to build and buy homes, representing an increase of 38.22% compared to the same period in 2011.
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