Salvadoran Developers Look Abroad for Loans

Faced with restrictions on local credit availability, 10 projects are looking to foreign banks for finance.

Monday, July 12, 2010

Mario Rivera, president of the Salvadoran Construction Chamber (Casalco), commented that it is not yet possible to access credits from the guarantee fund set up through a trust by the Multisectorial Bank of Investments (BMI).

In Laprensagrafica.com he is reported as saying that, “We can’t even get credit with a guarantee. There are two projects, one for $2.3 million and another for $1.4 million, and we are providing a large part of the capital”.



More on this topic

Salvadoran Banking Loan Less for Construction

January 2012

Financial institutions lent 15% less for building houses in 2011, complained the Chamber of Construction.

The Salvadoran Chamber of Construction Industry (Casalco) reported that the portfolio of loans for housing construction experienced a decrease of 15% in 2011, as banks only granted $113.9 million.

Housing Loans Yet to Recover in El Salvador

September 2010

Credits for home purchase only rose one percentage point between May and July this year (from 3% to 4%).

This announcement was made by the Salvadoran Construction Chamber (Casalco). Its report adds that construction loans are still static at 4% of all credit granted by the banking sector.

El Salvador: Housing Loans Down 70%

October 2009

Commercial banks loaned $84 million between January and August; in the same period of 2008 they gave credits for $302 million.

Mario Rivera is the President of Casalco, the Salvadoran Construction Chamber. He argues the government's anti-crisis plan does help his sector, but it is not enough.

El Salvador: Construction After Banking Flexibility

April 2009

In the absence financing solutions, the construction union sector initiated meetings with private banks.

The Salvadoran Construction Industry Chamber (CASALCO) is not seeking massive loans, but more flexibility in granting credit.

La Prensa Grafica published on its website: According to Nolasco, the hope is to find new funding mechanisms in private banking, as well as to know what the requirements are to gain access to resources. Earlier this year, several construction companies went to the the Multisectoral Investment Bank (BMI) to look for financing mechanisms that would allow the development of 11 housing projects that needed an investment of $70.1 million, of which $31 million was expected to be obtained from the second-tier bank."

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