Eleven clusters are operating in Costa Rica, in sectors ranging from digital animation to flowers, food or agricultural products, seeking better operating and financial leverage.
Achieving greater access to credit, winning new customers and suppliers, discussing industry issues and possible solutions, more formalized operation or devising new strategies are part of the benefits of belonging to a cluster, a policy that is actively supported by the Costa Rica Foreign Trade Promotion Office (PROCOMER).
While governments spend fortunes on consultants to promote SMEs, the imbalance between their expenses and their income is the main threat to employers.
An article in Elfinancierocr.com reports that Danilo Montero, executive director of the Costa Rican Association for Development Organizations (Acorde) noted that "... The main risk to the national economy in 2014 threatening micro, small and medium enterprises is the fiscal deficit. "
Between 2006 and 2013 the number of agencies in the network of cooperatives in the country doubled.
Salvadoran Credit Unions have experienced a significant increase in the last year in order to expand financial services in most areas of the country.
The Federation of Savings and Credit Cooperatives of El Salvador (Fedecaces) announced that "growth is supported by an increase of over 20% in the portfolio of loans and deposits, after the close of 2013."
Salvadoran coffee growers are decrying the fact that in order to qualify for a loan they must meet up to 17 requirements with financial institutions.
Among other things, the banks are asking coffee producers for 'the balance sheet and income statement at the end of last year, with ruling and notes, a trial balance which is not less than three months older than the date of application for the loan.
Under an agreement between the Davivienda Bank and U.S. AID long-term loans to small and medium enterprises will be enabled.
The U.S. Agency for International Development (USAID) and Banco Davivienda Salvadoreño S.A. signed an agreement pledging to promote access to finance for Salvadoran SMEs in order to improve productivity and exports, one of the goals of the Partnership for Growth between El Salvador and the United States.
They are also asking for policies that encourage the creation of new businesses and credit facilities, especially for young people.
During the XXIV Summit of Ibero-American Business Organizations which took place this week in Panama, employers from the region concluded that clear rules are needed to ensure legal certainty and thereby further advance the economic development of the countries.
The Economic Committee in Congress has agreed to pass a law that will enable collateral such as merchandise or intangible assets such as patents to be used to obtain loans.
The law will facilitate the process for natural and legal persons to apply for loans using collateral such as their properties, tools, patents, trademarks and merchandise. "It protects consumers more, is more respectful of consumer rights, is much fairer and avoids abuses," said the congressman, Francisco Zablah.
Access to credit could get more expensive due to liquidity constraints and a higher country risk.
According to the Central Reserve Bank (BCR), last June returns on savings invested for 180 days was 3.44% while in the same period of 2012 the figure stood at 2.49%. In addition, interest rates on loans for over a year are 9.75% and in June 2012 they were 8.50%.
Salvadoran banks want restrictions to be eliminated so that all financial institutions can share and have access to positive or negative credit histories of their customers.
Elsalvador.com reports that "The Credit Bureaus Act provides in Article 14 that the credit history of customers or consumers can only be supplied to operators with their 'express written consent'."
With the exception of El Salvador, bank lending is growing in Central American countries, strengthening in the years following the crisis and reaching double-digit growth in real terms.
From a report by Fitch Ratings:
Accelerating Growth: Central American bank lending has strengthened these countries in the years following the crisis, reaching double digit growth, even in real terms, with the exception of the Salvadoran banking system.
The IMF has temporarily suspended the availability of emergency funds for El Salvador because it has not met agreed targets, having exceeded government spending.
The IMF reported that the Salvadoran government may not use a precautionary loan (SBA) of $750 million, said Carlos Acevedo, president of Banco Central de Reserva (BCR).
The Fund based its decision on the breach of public spending targets, since the balance of public finances was one of the requirements for keeping the SBA for three years.
The Legislative has ratified a Treaty for the Establishment and Implementation of Central American Mortgages signed between Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic.
From a press release from the Legislative Assembly of El Salvador:
The Legislative Assembly has ratified with 71 votes, the Treaty for the Establishment and Implementation of Central American Mortgages signed between the Republics of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic.
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.
"We have been growing in business banking, which deals with medium enterprises, and the corporate side.
The bank, notable for its A + rating awarded by Fitch Ratings, focuses on loans for the corporate sector and hopes to expand its credit portfolio thanks to the injection of funds.
The G & T Continental Bank, of Guatemalan capital, said that it is to receive a capital injection of about $10 million, which would increase its loan portfolio in El Salvador.
The Agricultural Development Bank (BFA) has opened a line of credit to help participation in the tenth edition of the Cup of Excellence.
The Agricultural Development Bank (BFA) is opening a line of credit for small farmers, a new feature for this year's tenth Cup of Excellence event, announced the Salvadoran Coffee Council (CSC in Spanish).
"Through this initiative, which will facilitate the entry of more participants, it is expected that at least 250 farms will submit samples, from 26th to March 30th," reports ElMundo.com.sv. "This line is to help small coffee producers to also be able to support the time required for the tournament," said Ana Elena Escalante, executive director of the CSC.