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Latin America Investment News on Viva Tropical

El Salvadoran Development Banking Law Up and Working

Article Summary:

January 19th marks the beginning of El Salvador’s new banking law which will encourage the development of the Banco Multisectorial de Inversiones. The bank will have at its disposable $300 million in capital to offer direct lending to small and medium enterprises.

Original Article Text From El Salvador.com via Google Translate :

BMI Directly Grant Loans to Small and Micro
The chairman of the Central Reserve Bank of El Salvador (BCR), Carlos Acevedo, reported this morning that as of January 19 Multisectoral Investment Bank (BMI) will begin operating as the Development Bank of El Salvador (BDEs).

This allowed to grant loans directly to small and medium enterprises. Before you could only do so through open lines of private banks.

The BDEs have approximately $ 300 million of capital, which already owns 200 million, 60 million from the Development Fund and $ 20 million Fair Fund.

Prioritize development banks and micro credit for small businesses in the area of ​​tourism, including power generation, according to the BCR president Carlos Acevedo.

He noted that the economic cabinet is studying the interest rates that credit could be granted, a breakthrough that these could average between 6 and 7%.

The Legislative Assembly approved in September 2011 the law of the financial system to promote development, which gives birth BDEs, which will have as its main objective to promote the development of viable investment projects and cost of the productive sectors of the country.

Acevedo’s statements were made during a conference on the prospects of banks in Central America.
In the activity’s senior director and regional coordinator for the group of financial institutions, Fitch Ratings, said this year the bank will maintain the stability and profitability but that there may be a credit crunch.

Link to Original Article:

From El Salvador.com

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