Credit Starts to Recover

©image: デニス モジョ

Event though stats for the first half of 2009 do not report an increase in the credit balance of the banking system, "bankers forecast higher loan growth than predicted by the Central Bank in its macroeconomic program revision. The Bank estimated credit growth at 4.3% in Colones and 3% in U.S. dollars."

An article in Elfinancierocr.com reports that consumer confidence has increased, which reflects in more loans for home building.

In general, the banking sector casts doubts over next year's projections by the Central Bank, considering them too pessimistic in the light of recent economic recovery signals in several sectors.

Source: elfinancierocr.com

More on this topic

Return of Goods Purchased on Credit Increases by 77%

March 2009

The Superintendent of Financial Institutions of Costa Rica reported that the repossession of property for unpaid debts rose 77% from February 2008 to February 2009.

The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.

Central American Banks: Special Report

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.

Credit Card Market Stagnant in El Salvador

April 2010

Consumer budgets are still healing from the economic crisis, delaying a recovery in credit card lending.

Almost 60.000 credit cards were cancelled during 2008 and 2009, half of them for delinquency by their owners. Many others maxed out their credit and cannot use their cards anymore.

Alternative financing options for the private sector

October 2008

In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.

The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.