For the construction guild, in El Salvador it is essential to improve the financing conditions offered by banks to give greater impetus to the construction of low-cost housing.
In December of last year, the Salvadoran Chamber of the Construction Industry (Casalco) announced that they were preparing a law proposal, which contemplated the approval of preferential interest rates on loans for home purchases.
The builders' guild in El Salvador is preparing a law proposal, which provides for the approval of preferential interest rates on loans for home purchases.
The proposal to be presented by the Salvadoran Chamber of Construction Industry (CASALCO) will be applicable for bank loans to low- and middle-income families who purchase their first home.
In the first two months of the year the total amount of loans granted to build houses fell by 85% compared to the same period in 2015.
Data from the Salvadoran Chamber of Construction (Casalco) indicates that out of the total credit extended by the banking system to productive sectors in the country, only 1% was for construction loans.
As for loans granted for housing, in January and February Casalco reported that only $1.2 million was awarded to construction companies, well below the $8 million recorded in the same period in 2015.
Excessive bureaucracy and high taxation are among the factors behind the zero growth projections of the union of construction for the close of 2015.
More than one year after its entry into force, the law which intended to expedite processes for construction sector has not yielded the expected results, as manifested by the country's construction companies themselves.
In El Salvador entrepreneurs from the construction sector say the country loses $500 million in new investment projects because of the slow process of obtaining permits.
The Salvadoran Chamber of Construction Industry (Casalco) is once again asking the government for clear rules and efficient processes in the granting of permits for new construction projects.
The Salvadoran Chamber of the Construction Industry has signed a deal with the main union for staggered wage increases, maximum working hours and occupational safety programs.
50,000 workers in the sector, represented in the Union of Construction Workers and Related Salvadoran Entities (SITRACOCS), have managed to seal a collective bargaining agreement for 2014-2016 with the Salvadoran Chamber of the Construction Industry (CASALCO) related to incentives and improvements which include improvements in daily wages, working hours for auxiliaries and workers and obligations such as the participation of workers in training programs to improve construction techniques and safety.