Salvadoran Banks carefully analyze new credits
Salvadoran banks have started to restrict the granting of credit in order to avoid a liquidity crisis.
Tuesday, November 4, 2008
Various banks in the system "are being much more prudent and more cautious in their credit analysis," said the president of the Salvadoran Banking Association (Abansa), Armando Arias.
At the end of February the loan portfolio of Salvadoran banks was 4.6% smaller than the same month of 2009.
Banks in El Salvador remarked they have resources to boost the country’s economic recovery and lend them to companies.
The high reserve requirements and government regulation are preventing the growth of private sector credit.
The sector's growth has been hampered by the ceilings imposed by the Central Bank of Costa Rica on the growth of the credit portfolio.
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