Cámara Salvadoreña de la Industria de la Construcción Infrastructure and Construction Banking mortgage financing construction credit for construction housing Infraestructure & Construction Ismael Nolasco credit contraction loans Construction slowdown House for All Mario Rivera access to credit

Housing Loans Yet to Recover in El Salvador

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

Wednesday, September 22, 2010

©image: Concrete Forms

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.

Ismael Nolasco, Casalco executive director, said that while it is true that there is a slight increase in credits it is too early to say whether the sector is out of the crisis. "In reality there are no symptoms of a genuine recovery - the sector is still in need of monetary injection," Nolasco said, according to Elsalvador.com.

Source: elsalvador.com

Key entities

Cámara Salvadoreña de la Industria de la Construcción

Countries

El Salvador

Insight

housing credit for construction mortgage financing credit contraction access to credit Banking Infrastructure and Construction

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.

Salvadoran Developers Look Abroad for Loans

July 2010

Faced with restrictions on local credit availability, 10 projects are looking to foreign banks for finance.

Mario Rivera, president of the Salvadoran Construction Chamber (Casalco), commented that it is not yet possible to access credits from the guarantee fund set up through a trust by the Multisectorial Bank of Investments (BMI).

El Salvador: Housing Loans Down 70%

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.

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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