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

Panama: Fees and Taxes on Property Prices

September 2013

In recent years the percentage of taxes paid by promoters compared to the final cost of a home rose from 1.3% to 2.7%.

The price of building materials, labor and land values ​​are not the only factors that influence the cost of housing, taxes collected for construction also affect the end buyers.

Panama Experiences Construction Loan Boom

July 2013

In the last three years loans for the construction sector increased by 427%.

Statistics of the Superintendency of Banks of Panama (SBP) reveal that between January and May 2013, $2.509 billion more has been provided than in 2011, when the amount of loans processed was $587 million.

Panama: Boom in Construction Loans

April 2013

In January 2013, banks granted the construction sector loans worth $2.92 billion, which is $89.6 million more than in January 2012, when the figure was $2.83 billion.

These type of loans, represent 11.45% of the loans granted by the National Banking System, which adds up to a total of $33.5141 billion.

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.

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