Panama: Construction Loans Up 32%

The balance of loans granted by the banking system to the construction sector increased from $2.598 billion in April 2012 to $3.830 billion in the same month this year.

Wednesday, June 25, 2014

Loans for infrastructure were the only ones which showed a reduction in the period in question, going from $593 million to $377 million. Loans for housing, businesses and other categories showed increases.

In addition to economic growth, the deficit of rooms in the country is one of the elements that is driving the growth of housing construction and, in the opinion of industry representatives, will keep lending for this activity high over the coming years.

"...Elisa Suarez, director of Convivienda , said that the promoters are expecting a 14% growth in housing construction in 2014; however, she said that "we are aware that we have problems with housing prices because of cost increases, not only of the materials used for building but also increases in wages paid to workers and collective agreements which have occurred lately ' ".

More on this topic

Credit for Construction Up 13.5% in Panama

October 2013

Up until June 30 the portfolio of construction loans rose to $3.34 billion, $369.1 million more than in the same period in 2012.

Of that total, $136.6 million was used for housing, $490.9 million for commercial shops, $672.4 million for infrastructure and $1.04 million in other buildings, said the Superintendency of Banks of Panama.

More Credit for Construction Sector in El Salvador

March 2012

In a clear demonstration of the return of confidence in the banking sector in January 2012, construction loans increased four fold compared to January 2011.

Two reasons behind the increase in lending: the 8% growth of the industry in 2011 and the return of confidence in the banking sector, reports Elmundo.com.sv.

No Mortgage Recovery in Guatemala

February 2011

Loans to the construction sector in 2010 reported a 0.4% drop compared to 2009.

At the end of 2009 the banking sector loaned $ 816 million while in 2010 the figure was $ 813 million.

Likewise, defaults on housing loans increased by 1.4%.

"This was the only sector which reported a drop in the loan portfolio, which, in general, went up 5.6%," reported Sigloxxi.com.

Panama: Loans Increase by 7.3%

May 2009

In the first quarter, Panamanian banking has loaned out $1.405 billion, $95.6 million more than during the same period last year.

According to the Panamanian Bank Superintendent, the industrial sector was the one that asked for the most resources.

Edith Castillo Duarte wrote in Prensa.com: "Commerce credit showed a 21.4% increase to $126.9 million and the construction sector received loans of $106.6 million, an increase of 13%."

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