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Salvadoran Banks carefully analyze new credits

Salvadoran banks have started to restrict the granting of credit in order to avoid a liquidity crisis.

Tuesday, November 4, 2008

©image: Jake Wasdin

Various banks in the system "are being much more prudent and more cautious in their credit analysis," said the president of the Salvadoran Banking Association (Abansa), Armando Arias.

He said that the crisis will have an impact on El Salvador, but it will be the reduction in remittance that will have a ripple effect.

Another reason for the impact is that "access to international financing is now more restricted" and because the cost of money obtained abroad has gotten more expensive, he explained.

Source: elsalvador.com

Key entities

Salvadorean Banking Association Armando Arias

Countries

El Salvador

Insight

restriction of credit bank credit Banking

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