Credit to SMEs Not Growing in Costa Rica

In the first half of 2012 the volume of loans to micro, small and medium enterprises reached ¢243,000 million ($485 million) in the first half of 2012.

Thursday, October 18, 2012

The figure represents an increase of just 1.36% compared to the same period in 2011, lower than the inflation rate, and 39% of the projections of the Ministry of Economy, Industry and Trade for all of 2012.

Danilo Montero, director of the Costa Rican Association for Development Organizations, said companies are asking for fewer loans because of high interest rates, government paperwork, long waiting times and the need for collateral.

"One must also consider that domestic economic activity, which is the main market for SMEs, has not been as dynamic as the external market, so many SMEs have not needed to borrow", said Pedro Morales, adviser on industrial policy and SME’s at the Chamber of Industries to Nacion.com.



More on this topic

Private Sector Credit is Slowing Down

June 2018

Up to February 2018, the growth rate of bank loans for trade, services, consumption and housing activities decreased considerably compared to the same period last year.

According to figures from the Central Bank of Costa Rica, between February 2017 and the same month of this year, the annual growth rate of credit granted by the financial system to the private sector fell from 13% to 7%. 

Credit Supply Stagnant in El Salvador

June 2011

Since the fourth quarter of 2008, credit extended by banks has been declining consistently.

An analysis published by the Salvadoran Foundation for Economic and Social Development reads:

“This decline has various interpretations, from suggestions that it is the result of reduced demand due to the lack of investment opportunities, to the internationalized banking system’s lack of identification with the needs of local businesses. Regarding the first scenario, this is a very limited conclusion and the second case offers an interpretation that doesn’t have an economic foundation.

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.

Credit Continues to Drop in Guatemala

June 2009

June shows 12-month growth in credit at 6.7%, below the 11.7% it had at the beginning of this year.

According to the president of the Chamber of Industry of Guatemala, Thomas Dougherty, uncertainty about the international economy and contingency plans brought about by companies are a few of the causes for the decrease in requests for lines of credit.

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