Consumption by private companies and households went up by 4.6% in the first half of the year, exceeding the average growth rate of 2% of its main trading partners.
An example of the pace at which private consumption has been growing in the country is the relevance it has taken on in the bank's loan portfolios. Deputy general manager of Banco Nacional de Costa Rica, Bernardo Alfaro, explained that"... These kinds of operations rose from 28% of total credit seven years ago to 32% today."
The construction project which will be developed through a trust has three sections of 1.6, 12.6 and 41 kilometers each, with three, four and two lanes in each direction, respectively.
The details of the project"Trust for the San Jose-San Ramon Road Corridor and its ring roads", awarded to Banco de Costa Rica, note that the first tranche from the Metropolitan park La Sabana to the the Interchange of the Circumnavigation, there will be three lanes in each direction with external and internal shoulders and dividing rails.
In Costa Rica the index of activity in the construction sector has had 4 consecutive months of downturn, and now faces the threat of new financial rules which will make access to credit more costly.
The construction sector's main concern is the impact that interest rates will have on the new standards which financial institutions will need to comply with.They are predicting an increase in credit costs primarily because of the new rules already in force and which determine that for institutions that lend money"... The minimum percentage level of the countercyclical estimate required is 0.33%. Each entity must register on a monthly basis expenditure equivalent to a minimum of 7% of its profits, until it reaches an optimum level defined by the Sugef. "
It is difficult to understand - especially because it has been made public - how a major state bank has described the International Bank of Costa Rica as "high risk" while another main state bank has stated the opposite.
The banks involved are Banco de Costa Rica (BCR) and Banco Nacional (BN). Between them they are the owners of Banco Internacional de Costa Rica (BICSA), with 51% of the shares the first and 49% of the second.
The Bank of Costa Rica has been selected to hold the trust which will be used to manage the project to expand the highway between the capital and the city of San Ramon, which will cost approximately $500 million.
The criticism attracted by the latest "commercial" venture by the State Bank of Costa Rica should not stick to just the surface of the fairytale castle and pink marketing campaign, but should go to the heart of the concept of state banks, which today have degenerated into simple banking institutions with commercial privileges.
This is precisely what Sebastian Hernandez does in his lucid analysis of the launch of the new brand Banca Kristal in new branches of Banco de Costa Rica, an exclusive service for women, and one which is painted pink.
Noting that it is complying with the law relating to money laundering, the head of Banco de Costa Rica confirmed the closure of the accounts in local and foreign currencies belonging to Latinamerica Trust and Escrow Company.
An article on Nacion.com reports that the president of the State Bank of Costa Rica (BCR), Paula Mora confirmed that "... the legal director of BCR, Eduardo Ramirez, assured him that the prosecution has an open case against Latco for alleged money laundering. "
The process of selecting trustees for the construction and operation of a major road work is running out of participants.
In February, when the law enabled the use of a trust to finance and build the road from San Ramon to San Jose, seven banks expressed interest in participating in the process, but now, following Banco Nacional´s decision to withdraw a few months ago, two other private banks have also decided to step aside.
The lending rates of Banco Nacional recorded an average reduction of 3.77% since January this year to date.
The reductions made by the Central Bank in monetary policy rate so far this year are beginning to have an effect on the structure of interest rates in banks. Banco Nacional, the largest in the market, recorded a drop of almost 4 percentage points in the interest rates for loans.
Lower demand for credit from the private sector is the main reason for the increase in liquidity in colones in the local financial system.
Although increased liquidity should be accompanied by a reduction in interest rates, this is not the case in Costa Rica, as expectations of a possible rate hike in the United States and internationally are being maintained and forcing them to be kept down.