Banco Promerica has raised $25 million from the future flow of receivables generated by remittances from Salvadorans living abroad.
The bank structured a financial vehicle through which it securitized flows of receivables generated by U.S. entities using Salvadorans to send remittances to the country.
In an article in Elsalvador.com the vice president of the securitization company Hencorp Securities SA, Victor Quijano explained, "when countrymen abroad send remittances to El Salvador, the latter may make them effective 10 minutes after the operation is made abroad, despite the advancement in technology, the money may not come as quickly to the country, therefore the bank, in this case Promerica, has to pay such remittances using its own funds, which in turn generates accounts receivable from remittance companies.
Price per gallon of Super gasoline, highest to lowest: $5.76 Costa Rica, Nicaragua $5.06, $4.87 Honduras, El Salvador $4.55, Panama $4.39, Guatemala $4.31.
A report has been released on the average consumer prices for Gasoline and Diesel in Central America, effective from the week 14 to April 20, 2013, based on official prices and monitoring or surveys carried out by various DGs of Hydrocarbons or equivalent in the capital of each Central American country.
Hedges are instruments whose results depend on an ongoing risk analysis of the exchange rate differential.
An article in Elfinancierocr.com states that "monitoring leading indicators, accounting, and using averages for time periods and curves are some of the recommendations provided by Amedeo Gaggion, HSBC's financial markets manager in the country."
The acquisition of cover, known as a PUT Option, allows the producer to ensure a minimum selling price.
At a time when volatility is the order of the day in international markets, this coverage or hedge has become an indispensable tool for any product that is exported and depends on international prices.
The CABI Commodity Price Index is an indicator of Guatemalan trade terms, composed of both local and international variables.
They take the prices traded on the stock exchange for raw materials that are important to the trade balance and they are weighted based on their importance, according to official data from the Banguat. The most important components are coffee (exports) and oil and derivatives (imports). In total, ten commodities representing 30% of Guatemalan commerce are used.
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