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.
Because of the hike in interest rates in the United States, several banks in Panama are already increasing mortgage rates by between 0.25% and 0.50%.
According to representatives of the Banking Association of Panama (ABP), the increase in mortgage loans is mainly due to the upward adjustment that interest rates are experiencing worldwide, which will affect the Panamanian market in the short and medium term.
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.
By the end of 2016, the bank loan portfolio for housing and commercial construction exceeded $14.7 billion, and more than 19,000 houses and 545 buildings were built in Panama in the last six years.
A combination of low interest rates coupled with a growing and stable real estate supply account for much of the growth in real estate and construction activities in Panama.
During the CAPAC Expohabitat fair about 1500 homes were sold and $200 million traded in mortgage transactions, which is 20% more than projected.
The Panamanian Chamber of Construction projectedgenerating $175 million, but $220 million was eventually traded, 20% more than planned and 12% more than the results of the fair in 2015, when$194 million worth of deals were negotiated.
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).
A bill in the Assembly seeks to balance the use of collateral trusts with real estate mortgages in order to meet the demands of the real estate market.
From a statement issued by the National Assembly of Panama:
A bill is being promoed that aims to improve Trusts in Panama in order to adapt them to the demands of the real estate market.
The Commerce Commission of the National Assembly welcomed the discussion of Draft No.
The recently approved amendment to the Housing Act provides a subsidy of 2.5% in the interest rate for mortgage loans that are not greater than $32,000.
Responding to industry demands and seeking to motivate the new housing market, the recently approved reform also provides, as well as the subsidy, that any bank can apply the exemption of 15% from Value Added Tax (VAT) for mortgage loans with this same ceiling rate.
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.