After completing inventory restocking, the activity of Costa Rican manufacturers shows a slowing trend due to lack of demand.
Investment strategy analysts from ALDESA report that the Monthly Index of Economic Activity (IMAE) for May shows a 3.74% increase year-on-year. The data from the deseasonalized series indicate that economic activity peaked in March before slowing in subsequent months.
Fitch Ratings issued a special report: "Central American Banking: Evolution of the Crisis and Learnt Lessons".
In Fitch's opinion, the negative impact the international crisis had on Central American banks was very evident in 2009. The current economic context poses growing risks for the sector, as well as an important challenge for this year.
"Banking systems of the region have witnessed a sensible reduction in their cumulative results in the first half of the year, mainly caused by a considerable increase in delinquent loan reserves", states the report. "These results will continue under pressure in the following months, and their potential bounce-back will depend on an improvement of the economic environment, which Fitch does not expect before 2010".
Costa Rican banks are reporting an increase in loans, specially for industry, services, commerce and home building.
Event though stats for the first half of 2009 do not report an increase in the credit balance of the banking system, "bankers forecast higher loan growth than predicted by the Central Bank in its macroeconomic program revision. The Bank estimated credit growth at 4.3% in Colones and 3% in U.S. dollars."
June shows 12-month growth in credit at 6.7%, below the 11.7% it had at the beginning of this year.
According to the president of the Chamber of Industry of Guatemala, Thomas Dougherty, uncertainty about the international economy and contingency plans brought about by companies are a few of the causes for the decrease in requests for lines of credit.
Profitability drops as asset liquidity increases, but liquidity is what ensures the life of the banking business and their customers' money.
Panamanian banks have not used the extra funds that the financial incentive program (PEF) made available to them in order to stimulate lending. In addition, it must be considered that said funds are very expensive, and they have simply not been needed.
Bank credit tightening makes it necessary to look for alternate private capital financing sources.
In the Elfinancierocr.com blog article "En numerous," Edgar Delgado Montoya outlined five options as a source of financing for both start ups and business expansion projects: Emerge Fund, Link Investment Caseif II, E + Co LAC, and E3 Corp.
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