In light of the private sector’s optimism created by the assumption of a new government and the expectation of more foreign investment, the AGB has said that there will be credit growth in 2012.

The Industrial Bank general manager and current president of the ABG, Luis Lara, said that the bank has over one billion Q20 ($ 2.5 billion) available and there is sufficient liquidity.

"We see that there is a lot of liquidity to support the productive sector with loans for all investments that need to be made, and as Guatemalans we will always be here to support them, I see no problems on that side, because, also, we see stability in the rates," Lara said, accordingSiglo21.com.gt.

Source: sigloxxi.com

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.

Banco G & T El Salvador has $270 million for Loans

February 2012

The bank is planning to grant loans this year worth $270 million.

Last year it approved $210 million worth of loans to productive sectors such as industry, trade, services, agriculture and construction, an increase of 49% compared to 2010, said the General Manager of the institution, Roberto Silva Alvarez.

Private Sector Credit Still Growing in Guatemala

December 2011

Between November 2010 and November 2011 loan grants have risen by 14%.

The boom being seen in Guatemala’s economy is one of the main reasons explaining the rise in private sector credit, a key indicator of the state of an economy.

In Guatemala’s case, loans granted by financial entities have grown by 14% this year, driven not only by economic growth but also by the interest rate structure which favors debtors.

Credit restrictions affecting Salvadoran productive sector

October 2008

Producers Associations in El Salvador expressed concerns about the tightening of credit policies.

The Corporation of Exporters of El Salvador (Coexport) has detected more restrictions for new credit and for refinancing. "The processes are stricter, especially for new clients and those who are in default," said Silvia Cuellar, executive director of Coexport.