The Failure of Costa Rica's Development Banking

Three years after its creation, the system designed to finance SMEs still finds no productive use for some $ 370 million.

Friday, February 18, 2011


An article by reports that "$ 370 million remain unused due to legal problems and more than $ 20 million has been spent in writing off debts from the previous inherited trust. Also, nearly all of its 13 employees are under internal investigation."

The ineffectiveness of the system now adds to the executive´s decision to withdraw a draft law which was under consideration at the Legislature, so no solution to unlock the system is in sight, at least in the short term.

More on this topic

Credit for Entrepreneurs in Panama

November 2010

Credit needs for the entrepreneurial sector in the country reached $ 245 million.

The figure comes from the study "Proposal of policy, strategy and action plan for implementation of micro-finance services in Panama", created by the Ministry of Economy and Finance, the Micro, Small and Medium Enterprises (Ampyme) and the United Nations Development Program (UNDP).

Panama: Banking Credit Boom Continues

February 2014

Between January and November 2013, Panamanian banks gave out 14% more loans than in the same period of 2012.

Statistics from the Superintendency of Banks of Panama (SBP), reveal that during the first 11 months of 2013, the National Banking System (SBN by its initials in Spanish) gave out 14% more loans than in the same period of 2012, with its balance being $24.8154 billion.

Nicaraguan Breeders Short on Funding

June 2010

Development bank “Produzcamos” has $12 million available for livestock breeding loans, but it has only approved 5%.

Solomon Guerrero, from the Nicaraguan Breeders Association (Faganic), believes that the main problem is the long periods required to get a loan with the bank (almost two months).

In Depth Review of Credit in Panama

August 2013

One third of Panamanians have on average three loans, and they make payments on them with an acceptable default rate.

About 1.2 million Panamanians have loans, of which 85% are employees.

According to Luz María Salamina, general manager of the Panamanian Credit Association (CPA), "...

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Organization that operates in Panama.
Phone: (507) 207 3420 - (507) 207 3400

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