An analysis published by the Salvadoran Foundation for Economic and Social Development reads:
“This decline has various interpretations, from suggestions that it is the result of reduced demand due to the lack of investment opportunities, to the internationalized banking system’s lack of identification with the needs of local businesses. Regarding the first scenario, this is a very limited conclusion and the second case offers an interpretation that doesn’t have an economic foundation.
The purpose of this study is to show that the dynamic economic rationale observed in crediting activity is the normal result of an atmosphere of heightened national and international uncertainty, the shock caused by the global financial crisis and the increase in risk of the bank’s customers.”
The research paper was written by Dr. Roberto Rivera Campos, Director of the Department of Social and Economic Studies, DEES:
http://www.fusades.org/get.php?id=2684&anchor=2
Source: Salvadoran Foundation for Economic and Social Development
More on this topic
December 2009
In the first 11 months of the year, Salvadoran companies sold 24.57% less in average.
9 out of each 10 businessmen were affected by the economic crisis, according to a study conducted by Luis Membreño, independent economist.
From Laprensagrafica.com: "The drop ranges from 10% to more than 50%. 'It is a result of the population earning less money; less income and jobs', explained Membreño".
September 2010
Demand for credit is not growing as expected, as there are fewer investments in the country.
According to Roberto Orellana Milla, CEO of Banco Agrícola, "demand for credit has dropped 4%".
Elsalvador.com published more statements by Orellana: "Although we are in the midst of a slight economic recovery, we are still being affected by the 2009 crisis, and uncertainty and insecurity are contributing factors for the little demand for credit, 'because the crisis has affected a lot of companies and individuals'".
October 2009
Commercial banks loaned $84 million between January and August; in the same period of 2008 they gave credits for $302 million.
Mario Rivera is the President of Casalco, the Salvadoran Construction Chamber. He argues the government's anti-crisis plan does help his sector, but it is not enough.
March 2010
Banks have been very cautious when granting loans; as a result, their liquidity is 24.4% above the legal requirement.
Abansa, the country’s banking association, reported that in January the index measuring liquidity stood at 41.42%, more than in January 2009 (36.51%).
Economists and business leaders criticize banks for not lending these resources to the productive sectors of the country.
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