Data from the Superintendence of the Financial System (SSF) indicate that between February (the month before the beginning of the health and economic crisis) and June of this year, the credit portfolio contracted by $149 million, from $13.276 million to $13.127 million.

You may be interested in "Financial Services: Business Potential in Central America"

Although generally the amount of financial resources placed in the market decreased, the credits demanded from international banks have been maintained.

Mauricio Choussy, former president of the Central Reserve Bank (BCR) and economic analyst, told Elmundo.sv that "... The credit lines from international banks to commercial banks have not been reduced, but have practically been maintained. This was not a feature of the 2008 crisis, when international banks withdrew their credit lines to Latin American banks."

See "Credits: What are Central American consumers looking for?"

Choussy added that in this scenario the credits are directed "... fundamentally to companies where we see a 9.29% growth and we can conclude that the demand for financing is low and this is encouraging competition for rates, despite the fact that the credit risk is increasing because in an economy that is contracting the credit risk is rising."

According to CentralAmericaData reports, more than 1.3 million people in El Salvador are looking for access to credit on the Internet. Of this group of consumers, approximately 9% explore options for contracting a personal loan.

Source: elmundo.sv

Do you need detailed information on the financial services market? Contact Us

Your message has been sent. We will contact you shortly.

Name*

Last Name*

Email:*

Telephone (Country):*

Company:*

Title:*

Size of the Company:* Choose one... Less than 100 employees Between 100 and 500 Between 500 and 2500 More than 2500

Industry:* -None- Agro Alimentos y bebidas Construcción e infraestructura Banca y finanzas Farmacéutica y salud Servicios Retail Automotriz Energía y minería Química y plástico Bienes Raíces Educación Bienes de consumo Industria y manufactura Transporte y logística Telecomunicaciones Administración pública

Yes, I want to receive a call from a salesperson*

Comments:*  

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.

Need assistance? Contact us

(506) 4001-6423

More on this topic

Loans in Guatemala: Making Procedures More Flexible

August 2020

The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000.

In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks.

Credit Downwards: What Factors Affect Them?

August 2020

Suspension of contracts, uncertainty about the economic future and reduction of salaries, are some of the factors that have affected the banks in Panama to place fewer loans in this context of health crisis.

The amount of new loans granted by Panamanian banks was $589 million during May this year, a 26% reduction compared to what was reported in April 2020.

Credit Cards: Demand up 9%

July 2020

Between May 2019 and the same month this year, the number of credit cards circulating in the Salvadoran market increased by 9.2%.

According to figures from the Observatory of Credit Cards (OTC), of the Consumer Defense Office, in May 2020 there were 876,197 credit cards circulating in El Salvador, which is more than the 801,822 registered in the same month of 2019.

Impact of the Crisis on the Banking Sector

March 2020

Increased demand for credit and more requests for loan restructuring is part of what the covid-19 crisis has brought to Guatemala's banking sector.

According to representatives of the Guatemalan Banking Association (ABG), the spread of covid-19 and the restrictive measures that have been decreed in the country are affecting the liquidity of companies, many of which have no income and must use credit to pay their bills.