In order to improve the bank’s financial position, the Guatemalan government has transferred $12.7 million and expects to disburse another $6.3 million in the short term.
Pavel Centeno, the finance minister, said the decision was made this year to capitalize on the effects of the fiscal deficit not increasing in the coming year 2013.
Regarding the issue Victor Mancilla, Chief Superintendent of Banks, said that because of the effects of absorbing banks in the past, the CHN became weakened because of the portfolio management that these institutions received and it needed to incorporate these reserves. 'The government is giving its support so that these reserve can be constituted, because of the impaired portfolio, a result of these operations.' ", reported Elperiodico.com.gt
According to the Financial System Superintendent, Salvadoran banking is well capitalized, with strong indicators.
The Superintendent of the Financial System, Luis Armando Montenegro, told Laprensagrafica.com that the Salvadoran banking system is solid, "so at this time it is not necessary to perform stress tests, such as those conducted recently by the FED in the United States..."
After being capitalized, the three state banks - Bank of Costa Rica, The National Bank and Bancredito - reactivated all their lines of credit.
Nacion.com reports: "The Bank of Costa Rica has issued some $14 million (¢8 billion colones) since December 23.
At Bancredito, Arnoldo Trejos, Commercial sub manager, reported that they are currently formalizing the requests that were accumulated during the last few months of 2008.