Guatemala: Increased Credit for Large Companies

In September the total amount of loans to large companies increased by 7.04%, compared to the same period in 2010.

Monday, October 31, 2011

Regarding the data from the Superintendency of Banks (SB), an analyst from the Association for Research and Social Studies (ASIES in Spanish), Ruben Dario Narciso, detailed several reasons that have lead to the increase.

Adequate accounting records and financial controls improve access to credit lines ... "Many medium and small companies do not have adequate accounting and financial indicators that clearly reflect their revenue."

Another factor is that big companies record all sales and therefore register all income", added the analyst.

Ronald Garcia, General Manager at Bantrab, adds that the rules for granting credit contain certain requirements that only a certain number of businesses can fulfil.



More on this topic

Loan Portfolio in Guatemala Up 17%

October 2013

Up until the end of September banks provided loans worth $15.356 billion, $2.226 billion more than in the same period in 2012.

This was revealed by data published by the Superintendency of Banks (SIB). "The information relates to loans to large businesses which make up 54,02% of the total with $8.295 billion, while the microcredit sector has the lowest share with 2.41% participation, equivalent to $369 million," reported Prensalibre.com.

Credit Portfolio in Guatemala Grows 17.4%

September 2013

Up to July banks had $14.963 billion in lendable resources, while in the same month of 2012 the figure was $12.738 billion.

Of that total, the sector of electricity, gas and water was the fastest growing activity with 50.64%, going from a balance of $538 million in 2012 to $810 million in 2013. Second place is held by the business sector which grew 20.92% with $1.394 million.

El Salvador: Financial Companies Request International Funds

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Financial companies members of ASIFBAN are demanding the government more access to international financial resources.

Nelson Alvarado is the President of the Salvadoran Association of Financial Intermediaries, also known as ASIFBAN. He stated that his union is undertaking several measures to obtain more financial resources...

$3 million for small and medium sized companies in Guatemala

December 2008

The Inter-American Investment Corporation signed an agreement with the Eastern Financial Company to channel $3 million in credit for the companies.

Steven Reed, sub general manager of t he IIC, said that the agreement is very important due to the financial crisis and reaffirms the IDB's commitment to supporting the region during difficult times.