The end of the movie is uncertain for buyers of apartments, financial institutions, suppliers and investors, who are the creditors of more than $65 million in the tourist and residential resort in Panama.
Although the Panamanian real estate market had already been noticed for the relative ease with which developers fail to fulfill their promises, the RG Hotels case demonstrates the urgent need to strengthen due diligence prior to any investment in this sector.
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 OECD has given an overall grade of "largely fulfilled" but noted that there is no consolidated record to document all of the trusts created and the funds managed using this process.
From a statement issued by the Ministry of Finance in Costa Rica:
"Partially met" is the description given by the Organization for Economic Cooperation and Development (OECD) of work undertaken by the country to meet international standards set by the Organization on transparency and exchange of tax information.
The Costa Rican Social Security Department has approved the establishment of a trust fund for hospital construction and infrastructure equipment for the next 11 years.
The institution announced that in 2016 it will select the financial institution that will administer the trust and start the first project, which will be to build a new hospital in Turrialba in 2018.
A proposal has been made to create a trust for $25 million to restructure debts of cooperatives and finance the renovation of the plantations.
The main use of the trust funds would be the restructuration of producer´s debts, which have been growing since rust started to affect most of the plantations. The initiative appears to be valid, but has not yet been formalized through a bill nor have the financial conditions of cooperatives that would participate in it been verified.
Manitoba Hydro International of Canada and Honduras Energy Consortium, composed of Hondurans and Colombians, submitted bids to take over the management and distribution of the national power company.
From a statement issued by Coalianza:
The committee that administers the trust of the Loss Recovery Project related to services provided by the National Electricity Company (ENEE), Financial Flow and Distribution component today received technical and financial proposals from two companies, one Honduran - Colombian and another Canadian.
The Commission for the Promotion of Public Private Partnerships in Honduras has four trusts with Banco Continental to implement various projects in infrastructure and energy.
Officials at the Commission for the Promotion of Public Private Partnerships (COALIANZA), reported that this institution has four trusts with Banco Continental, usded to implement various infrastructure and energy projects, but after the decision issued by the National Banking and Insurance Commission ( CNBS) to force liquidation of the financial institution, they are waiting for to CNBS determine the procedure to continue execution of the projects.
The amendments made to the law on the trust to finance the expansion of the road from San Ramon to San Jose, limit sthe interest of potential trustees.
The Ministry of Public Works and Transport argues that the changes made to the original text raise questions for potential banks interested in setting up the trust, particularly because it does not include, among other things, the information necessary to determine the financial feasibility of the project. "...The practical effect of this gap in the law is that there is not the desired and necessary security required in the case that there is a need to go to the market to raise funds to finance the work. "
Three months after a law was signed that supports the use of a trust to expand the San José-San Ramón highway, a bank has not yet been selected to administer the funds.
Although four banks have already expressed interest in participating in the contest, the authorities at the National Highway Council (CONAVI) not only have not selected any one of them, they are only just preparing "....
Requirements for trusts and fiduciaries have been established along with the regime for duty to reporting fiduciary compliance, and regimes of fiduciary duty and taxation of trusts.
From a statement issued by the General Directorate of Internal Revenue (DGII):
DGII establishes rules for trusts and bonds for affordable housing
The General Department of Internal Revenue (DGII) announces to all citizens on the issue of the General Standard 01-2015 on the fulfillment of duties and tax obligations of the Trust which includes, among other measures, the mechanisms for paying VAT on the acquisition of affordable housing.
The government has announced the creation of a $19 million trust fund, to be used for lending to stimulate production and improving the herd.
From a statement issued by the Government of Honduras:
President Juan Orlando Hernandez officiated at the company Agribusiness El Corral in Siguatepeque, the creation of a trust that will allow for the provision of $19 million in loans to stimulate production and improve the national cattle herd inventory.
Three state banks have approved a syndicated loan for the Hydroelectric Project Los Negros II, 40 MW, whose construction will start in April in Upala, Alajuela.
The three banks are Banco Nacional, Banco de Costa Rica and Banco Popular and Banco de Desarrollo Comunal, and the trust for the Hydroelectric Project Los Negros II, "... emerged as an initiative of the Public Service Company of Heredia (ESPH) as part of its strategy for energy sources.
In Costa Rica four private banks and two state banks have expressed interest in becoming trustees of the $436 million trust fund for expanding the road from San Ramon to San Jose.
Public banks interested in becoming trustees of the project are the Bank of Costa Rica and Bancrédito, and the private banks are Scotiabank, Lafise, BCT and Improsa. Representatives from the Ministry of Public Works and Transportation (MOPT) announced that the next phase will establish the conditions and timetable for the tender to select the trustee.
Small investors have bought $15 million in shares ranging from $1,000 to $20,000, from a trust that will finance a wind project in Uruguay. Another $62 million will be offered to institutional investors.
EDITORIAL
The offer received in the Uruguayan Securities Exchange from small investors reached $100 million, a clear sign of the high interest in the prospective investment which has a mitigated risk as it is a project by a strong state run enterprise, with a return almost assured, estimated at about 11.5% a year, in the 20 years which is the term of the share certificate.
A bill in the Assembly seeks to balance the use of collateral trusts with real estate mortgages in order to meet the demands of the real estate market.
From a statement issued by the National Assembly of Panama:
A bill is being promoed that aims to improve Trusts in Panama in order to adapt them to the demands of the real estate market.
The Commerce Commission of the National Assembly welcomed the discussion of Draft No.