Increase in Unpaid Loans in El Salvador

Difficult to recover or irrecoverable loan portfolios are growing, a result of the deterioration of the users’ payment capacity.

Tuesday, May 5, 2009

Banks’ highly rated loan portfolios, such as A and B are experiencing a decrease; such is the case with loans classified as A1 and A2, which in March had a decrease of 4%, "which represented $326.8 million in loans that dropped in category," according to data from the Salvadoran Banking Association (ABANSA), published in Laprensagrafica.com.

Additionally, "according to ABANSA, the difficult to recover category rose 16.6% in March relative to December 2008, resulting in an increase of $36.8 million. During this period, the category that showed the greatest deterioration was D2, with 23.5%, but it only amounts to 0.7% of all loans."

More on this topic

$5,700 million in Consumer Credit in 2011

April 2012

In Panama, consumer credit closed 2011 with a portfolio worth $5,702.9million, an increase of 8% compared to 2010.

Personal loans reflected an increase of 10% compared to 2010 followed by credit cards with an increase of $71.3 million. Meanwhile, vehicle purchase loans increased by 10%.

Return of Goods Purchased on Credit Increases by 77%

March 2009

The Superintendent of Financial Institutions of Costa Rica reported that the repossession of property for unpaid debts rose 77% from February 2008 to February 2009.

The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.

Access to Credit Histories in El Salvador

December 2012

Salvadoran banks want restrictions to be eliminated so that all financial institutions can share and have access to positive or negative credit histories of their customers.

Elsalvador.com reports that "The Credit Bureaus Act provides in Article 14 that the credit history of customers or consumers can only be supplied to operators with their 'express written consent'."

Improved Credit for Salvadoran SMEs

February 2010

Private banks will present recommendations and observations to improve access to credit for SMEs.

Armando Arias, president of the Salvadoran Banking Association (ABANSA), explained that after a crisis all regulation must be reviewed.

“We are conducting a global and integral analysis of credit for SMEs, from the moment they request a loan to when they pay, either willingly or through other mechanisms”, reported Laprensagrafica.com.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


ICM Centroamérica

Organization that operates in Costa Rica.
Phone: (506) 2261-4565 - (506) 8612-2181

Company Profile

Stock Indexes

(Dec 8)
Dow Jones
0.33%
S&P 500
0.22%
Nasdaq
0.44%

Commodities

(Dec 9)
Brent Crude Oil
54.960
Coffee "C"
141.70
Gold
1,169
Silver
17.055