In Guatemala, banks will grant deferrals and will wait for loans whose debtors are directly or indirectly affected by the spread of the coronavirus, specifically those that are not more than one month late on February 29.
The Guatemalan Banking Association (ABG) reported on March 21 that these decisions were made with the objective of supporting clients and users of banking services, who will be affected by the spread of covid-19.
As a result of the economic effects that the outbreak of covid-19 will cause in the National Assembly, a general suspension of the payment of taxes, basic services and bank credits for three months is proposed, but the businessmen think that it is not suitable to generalize the measures.
Bill No. 390, which proposes the suspension of payments and collections of taxes, social security contributions, mortgage loans, commercial and agricultural loans, is advancing in the National Assembly.
In Panama, the National Assembly approved in the third debate the bill that contemplates interest rate benefits for the purchase of homes for a value of up to $180,000.
Until May 21, 2025, the plan to grant preferential interest rates for mortgage loans in the country was extended.
On May 20, Law No. 85 was published in Gaceta Oficial, which was approved by the National Assembly in April of this year and sanctioned this week by President Juan Carlos Varela.
The builders' guild in El Salvador is preparing a law proposal, which provides for the approval of preferential interest rates on loans for home purchases.
The proposal to be presented by the Salvadoran Chamber of Construction Industry (CASALCO) will be applicable for bank loans to low- and middle-income families who purchase their first home.
The union of builders is proposing creating an insured mortgage fund, to provide financing for those who can not meet the requirements demanded by banks.
The Chamber of Developers of Nicaragua (Cadur) announced that the fund could start with an initial seed capital of $5 million.The objective of the fund is to finance the purchase of new homes, and to facilitate access to financing for workers in the informal sector or clients that receive remittances from abroad.
Competition, interbank interest rates and a stable exchange rate are the reasons for the growth of the housing loan portfolio in the first quarter of 2016.
An article on Elfinancierocr.com reports that "... Housing credit has been growing at safe rate since the start of 2016 and this market is expected to remain this way for the rest of the year ...
The portfolio of mortgage loans at the end of 2014 exceeded $11 billion, with the categories of social interest loans and homeownership loans recording the highest growth rates.
Credit for housing increased by $1,142 million compared to 2013, followed by the commercial sector, where $195 million more was invested than in the previous year, according to the Superintendency of Banks in Panama (SBP).
Although equivalent to 85% of GDP, analysts say the portfolio of bank loans to the private sector is at healthy levels and can grow further.
At the end of 2014 bank lending to businesses and households in the country amounted to $46,212.6 million, well above the amount of public sector debt, which closed in 2014 at an amount equivalent to 39.4% of gross domestic product (GDP).
In order to facilitate access to inventory credit for SMEs plans are underway to reform the Law flexibilizing on chattel mortgages.
From a press release by the Ministry of Economic Affairs and Competitiveness:
"The Cabinet Council has approved a bill that promotes access to credit and modernizes the system of mortgage deposits and has authorized the Minister of Trade and Industry, by Resolution of Cabinet, to present the initiative before the National Assembly.
Embargoes enforced by banks for non payment of debts have caused the Salvadoran Assembly to convene the financial system trade unions.
Representative Alejandro Dagoberto Marroquím called for the Financial Committee of the Legislative Assembly to suspend embargoes through transitory measures.
In an article in Elsalvador.com, Guadalupe Hernández writes: "Representative Marroquín, who proposed the motion, explained that the transitory measure would suspend, for a 12 month period, embargoes executed by financial institutions on the ground of non payments ... The proposals did not reached a consensus, so representatives decided to convene ... the spokespersons of the financial system, to obtain more details on the topic".