The appropriation of productive land by peasant groups has caused the rejection of $8.2 million in loans requested by agribusiness.
The invasion of land housing mills and palm oil farms has increased credit risk. President by law to the Honduran Association of Sugar Producers (AHPA), Robert Vinelli said that because of the increased risk, banks will have more requirements and there will be an increase in borrowing costs because of uncertainty.
The partnership between the Executive Directorate of Revenue and the company Equifax, will mean that tax defaulters will be included in the credit bureau’s information.
This agreement will allow access by the financial system (private banks, finance companies, and cooperatives), to taxpayer’s debt information held with the Treasury.
"The measure of including tax debtors the credit bureau will help strengthen the credit analysis carried out by financial entities," said a source from the Honduran Association of Banking Institutions (AHIBA) ", according to an article in Elheraldo.hn
The high reserve requirements and government regulation are preventing the growth of private sector credit.
While the coffers of the banks are filled with notes due to growth in deposits and liquidity in the economy, the country's productive sector can not find adequate financing to boost growth.
The increasing liquidity in the financial sector can be explained by excessive regulation required of banks, which sees the need to raise interest rates, among other measures, in order to be able to provide credit while keeping their financial structures healthy.
Summa Financial Special: Presenting the classification and analysis of the regional financial system.
In the April edition, Revista Summa will present its bank, insurer and stock exchange rankings. On the whole, it shows a healthy sector with the capacity to face the challenges ahead. Regional banking groups have gained greater importance and the magazine identified ten that represented 33% of the assets for 2008.
From abundance to scarcity: Challenges faced by Central American banks in an
environment of tight liquidity.
After having been hit hard by the US mortgage crisis in 2008, large US and international banks have considerably weakened, in some cases escaping from bankruptcy only thanks to strong government intervention. Such an event has eroded the public’s confidence in the financial system worldwide.
From abundance to scarcity: Challenges banks face in an environment of little liquidity.
After losses caused by the real estate crisis in the United States in 2008, big American banks and those from other developed countries have been greatly weakened and, in some cases, have only escaped bankruptcy thanks to help from their governments. This situation has contributed to the erosion of confidence in the financial markets at the global level.
It is indispensable for the economy to continue using credit to finance production and commercial operations.
The analysis by Raul Moreira published in the La Estrella in Panama emphasizes that "the demand for internal credit by the private sector was at $31.6 billion in October and continued to grow at 20.38%, while deposits had an increase of 24.69%, which shows that the main source of financing for the expansion of credit comes from domestic savings by individuals. Prudence and caution is recommended for credit policies and it is important to maintain the rhythm of capturing funding."