The banking sector disagrees with a bankruptcy bill that would generally benefit debtors.
ABANSA, the Salvadoran Banking Association, has asked the SSF, the superintendence of the financial system, to introduce more flexibility in the debtor’s classification section of the bill.
“By making this rule more flexible for a year, we will be able to refinance or restructure loans for those owing $100.000 or less”, explained Armando Arias, chairman of ABANSA.
The Superintendent of Financial Institutions of Costa Rica reported that the repossession of property for unpaid debts rose 77% from February 2008 to February 2009.
The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.