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Fitch Ratings
In Fitch's opinion, the negative impact the international crisis had on Central American banks was very evident in 2009. The current economic context poses growing risks for the sector, as well as an important challenge for this year.
"Banking systems of the region have witnessed a sensible reduction in their cumulative results in the first half of the year, mainly caused by a considerable increase in delinquent loan reserves", states the report. "These results will continue under pressure in the following months, and their potential bounce-back will depend on an improvement of the economic environment, which Fitch does not expect before 2010".
Source: Fitch Ratings Centroamerica
More on this topic
September 2011
Fitch Ratings has issued a special report entitled, "Central American Banking: After the Crisis, a Disparate Evolution"
In Fitch's opinion the banks have shown a mixed performance in Central America during the period of the global financial crisis. At the same time, banking systems have dissimilar perspectives on future performance, reflecting different economic growth prospects in the region.
June 2009
Several factors have affected the brewery: the depreciation of the colon, the real estate crisis, the purchase of Kern’s and Pepsi, and the Draconian transportation law in Costa Rica.
“If you drink don’t drive, if you drive don’t drink.” The new transportation law of Costa Rica, with rigorous sanctions that could even include the seizure of vehicles for drinkers behind the wheel, has caused a reduction in the consumption of beer. This is added to the depreciation of the colon, which has generated losses due to the exchange rate, and a greater participation in the project Reserva Conchal that naturally has been affected by the real estate crisis.
October 2009
Net premium arrears are now $4.9 million, a 15% reduction.
HSBC Insurance's income was $2.7 million for the first half of 2009, 49% less than the same period of 2008.
Prensa.com published additional figures reported by the insurer for the first half of 2009: "...reserves for premiums of doubtful collection drecreased from 56% to 30%...
April 2009
Fitch Ratings reported that the risks to regional banks during the current crisis are growing and represent a major challenge for 2009.
The combination of reduced credit expansion, fund restrictions and increasing loan provisions have limited the profits of most banks and it is expected for these factors to continue to pressure the results in the coming months.
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