Cámara Salvadoreña de la Industria de la Construcción Infrastructure and Construction Ismael Nolasco construction Construction slowdown credit for construction home lending Banking Real Estate Infraestructure & Construction Salvadorean Banking Association housing Armando Arias Fondo Social para la Vivienda (El Salvador) Mauricio Funes

El Salvador: Construction After Banking Flexibility

In the absence financing solutions, the construction union sector initiated meetings with private banks.

Wednesday, April 29, 2009

©image: spyffe

The Salvadoran Construction Industry Chamber (CASALCO) is not seeking massive loans, but more flexibility in granting credit.

La Prensa Grafica published on its website: According to Nolasco, the hope is to find new funding mechanisms in private banking, as well as to know what the requirements are to gain access to resources. Earlier this year, several construction companies went to the the Multisectoral Investment Bank (BMI) to look for financing mechanisms that would allow the development of 11 housing projects that needed an investment of $70.1 million, of which $31 million was expected to be obtained from the second-tier bank."

Source: laprensagrafica.com

Key entities

Cámara Salvadoreña de la Industria de la Construcción Salvadorean Banking Association Ismael Nolasco Armando Arias

Countries

El Salvador

Insight

home lending bank Banks Construction slowdown credit for construction construction banking sector Banking Infrastructure and Construction Real Estate

Salvadoran Banking Loan Less for Construction

January 2012

Financial institutions lent 15% less for building houses in 2011, complained the Chamber of Construction.

The Salvadoran Chamber of Construction Industry (Casalco) reported that the portfolio of loans for housing construction experienced a decrease of 15% in 2011, as banks only granted $113.9 million.

$50 Million for Housing in El Salvador

June 2009

Commercial Banks have authorized short term loans to builders for the construction of 5000 homes.

In response to the ‘anti-crisis plan’ announced by President Mauricio Funes on Thursday June 18th, the Salvadoran Banking Association (Abansa) will be authorizing construction loans for $50 million.

Housing Loans Yet to Recover in El Salvador

September 2010

Credits for home purchase only rose one percentage point between May and July this year (from 3% to 4%).

This announcement was made by the Salvadoran Construction Chamber (Casalco). Its report adds that construction loans are still static at 4% of all credit granted by the banking sector.

Salvadoran Construction Remains Stagnant

July 2011

Despite some signs of recovery, mainly in public works, the industry continues to stagnate, as shown by credit indicators for construction.

Between January and May 2011, banks lent $7.4 million for housing projects, 73% less than in the same period last year, when loans were for $27.7 million.

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