The Lehman effect on El Salvador

The Lehman Brothers bankruptcy will not directly affect the Salvadoran financial and stock market, but analysts point to effects on the macro-economy.

Wednesday, September 17, 2008

The critical session experience on Monday at the New York Stock Market Exchange and the main stock exchanges in Europe, Asia and Latin America, due to the Lehman Brothers bankruptcy and buy out of Merril Lynch, have caused economists and experts to consider the effects and slight repercussions on the Salvadoran economy.
According to Roberto Erroa, an analyst for the Stock Foundation, he does not foresee any dramatic movements in the national stock market.
"It will not have a direct effect because our stock market is not fully developed, neither is the capital market," Erroa indicated.
Nonetheless, he warns that the effects of the mortgage, banking and stock crisis should be scaled for Latin America which has not been very affected as in the United States, he explained.

More on this topic

Price of Costa Rican Bonds on the Rise

September 2009

News of upcoming economic recovery is pushing up the price of Costa Rica's external debt bonds.

An article in Prensalibrecr.com reports that "Costa Rica's sovereign debt bonds (bde) are not immune to the price increase of other emerging market bonds. As a result, the bde 2020 was traded as high as 127.91 this week, reaching levels similar to those before the bankruptcy of Lehman Brothers".

Panama "has not been infected"

October 2008

"Our banking system is one of the strongest in the world," emphasized Carlos Vallarino, Comptroller General of the Republic.

To back up his statement he said that they currently have 63.6 billion dollars in assets, "very high" liquidity at around 24%, and a comfortable equity and capital adequacy of 14%.

The Lehman effect on Costa Rica

September 2008

Analysts and economic gurus are forecasting a dark future for the Costa Rican economy, after the failure of Lehman Brothers.

Things could get worse with the announce on Sunday of the sudden sale of Merrill Lynch, in which the Central Bank of Costa Rica probably has some assets, to Bank of America.

Lehman effect on Panama

September 2008

The fall of Lehman Brothers and the sale of Merrill Lynch shook stock markets all over the world.

These announcements have caused a general fall in the international markets, however, the Panama Stock Exchange did not react to these events. As a matter of fact, it closed with a 1.31% increase.

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