El Salvador: Subsidies Proposed for New Homes

The project by the Construction Chamber is a subsidy on interest rates for new home purchases with a value not to exceed $63,000.

Monday, March 2, 2009

La Prensa Grafica published on its website: "'CASALCO (Salvadoran Construction Industry Chamber) has taken a law which is in effect in Panama as a model. The proposal is for financial institutions to grant a subsidy on mortgage loans for individuals through interest rates. When we saw the problems we were facing in long-term financing given bank tightening, we spoke to people in Panama and it clicked. The decision was made to work on a Salvadoran law proposal to be submitted (to the Legislative Assembly) after the presidential elections,' said Ismael Nolasco, executive director of CASALCO."

More on this topic

Lack of Regulatory Laws in El Salvador

November 2012

Businessmen from various sectors are demanding regulation by the government of several existing laws, which allow for different interpretations and legal uncertainty.

Elmundo.com.sv reports that "representatives of the Salvadoran Association of Industrialists (ASI), the Salvadoran Chamber of Construction (Casalco) and the Corporation of Exporters of El Salvador (Coexport), said that the lack of regulations or breach of these in many laws intended to raise productivity, is generate the opposite effect from the original objective. "

Salvadoran Bureaucracy Hampers Home Building

June 2010

Business unions complain that excessive red tape complicates the country’s economic recovery.

The Social Housing Fund has 93 projects pending authorization, including private and public initiatives.

The Salvadoran Construction Industry (Casalco), estimates that it takes 18 months to complete the required paperwork, stating that this adds considerable costs to any project.

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."

Salvadoran Construction Chamber requests $375 million

November 2008

The group proposes that housing and public works be reactivated in order to face the crisis and revive the economy.

Yesterday, the Salvadoran Construction Chamber (Casalco) proposed a preliminary plan (Law of Preferential Interest Rates), which would require $375 million for housing which would be financed by commercial and state banks.

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