Consumers money is still being used to fund losses by the state-owned internet service provider, which have exceeded $100 million in the last six years.
At the expense of consumers - via prices for energy and telecommunications- Costa Rica is still keeping running state enterprises whose inefficiency has been proven. This time, Nacion.com reported that the Costa Rican Electricity Institute (ICE) covered the losses of Radiographic Costarricense (RACSA) with lending and a capital injection to that subsidiary.
The state run oil company in Costa Rica registered losses above $24 million during the first nine months of 2015, despite having the highest prices in the region.
In the first nine months of 2015 the Costa Rican Oil Refinery lost more than $24 million. The state run company, which has had a monopoly in refining and sale of fuels in Costa Rica for more than half a century, has payroll costs representing 56% of its total expenditure.
While waiting for the start of the repair works, the Honduran authorities are complaining about a lack of resources to cover operating expenses for November and December.
Authorities at the Cajon dam have request at least $94,000 from the Budget Committee of Congress to cover operating costs for the final months of 2014.
Juan Francisco Argeñal, the hydroelectric station's manager, told Laprensa.hn that "... The financial situation is that it is currently in deficit, as we lack the resources to, among other things, pay staff who work there. We met with chairman of the Budget Committee, Francisco Rivera, he is going to negotiated to see the possibility of this outstanding budget being assigned to us so that the dam can continue operating".
While the canal expansion is not finished the Maersk and Evergreen shipping lines are transporting goods in post Panamax ships through the Suez Canal.
The Panama Canal Authority (ACP) estimated that the temporary transfer of some of the services of Evergreen and Maersk Line shipping means they will lose out on $44 and $30 million respectively. To date, the expansion works are 75% complete and it is expected that the new locks will begin operating in January 2016.
The low profitability of State bonds, in which the pension funds are required to invest, will generate millions in losses that will affect future pensioners.
From a communique from the Salvadoran Association of Industrialists (ASI):
The Salvadoran Industrial Association held a transparent forum today entitled 'Urgent Need to Protect Salvadoran Workers Pension Funds', in which they analyzed the perspectives of different entities involved in the issue of pensions.
With different modus operandi, the governments of Costa Rica and El Salvador are degrading the future value of workers' savings deposited with Pension Operators.
In the case of Costa Rica it is the voracity with which the Treasury has to go to the stock market in order to raise money to pay for increased spending, especially on staff salaries, leading to low yields on government bonds, which in an obligatory manner make up the portfolio of the Supplementary Pension Operators (PCO), assets which are supposed to safeguard the future value of pensions.
The chief executive of the Spanish company has met with President Ortega to present their complaints regarding problems of distribution and energy theft.
Government officials and company representatives have maintained total secrecy about the meetings.
Sources consulted by La Prensa "confirmed that the substance of the discussion is still in the memorandum of understanding signed by both parties in February 2009, a document that contains all the complaints and standpoints of Gas Natural-Fenosa and the Government of Nicaragua."
The banking regulator has requested shareholders to begin the liquidation process of the financial institution.
The head of Nicaragua's Banking and Finance Regulator (SIBOIF), Víctor Urcuyo, has said that the decision does not impact on the bank's customers since, "the vast majority have already received their money".
The Nicaraguan Association of Micro-Finance Institutions (ASOMIF) has offered to assist in the recovery of Banex.
Alfredo Alaniz, ASOMIF's executive director, commented that in meetings held with Nicaragua's banking regulator and central bank authorities those present agreed on the need for the institution to continue its operations whether as a bank or as a finance company.
Live at the beach in the exclusive Punta Leona Resort, a dream with shaded white sand beach, pools, restaurants, wild life. New affordable, energy efficient home. The house - possibly the only energy efficient green...
Technisys is the omnichannel digital banking company. It offers technology solutions that allow banks to stand out through their customer experience, increase their sales and dramatically reduce their time-to-market when it comes to launching new financial services. Technisys culture lies on its innovation, its human capital talent and its vision of the future. The digital age represents an unprecedented growth opportunity for the financial service providers, and Technisys helps its customers to differentiate and capitalize it.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (506) 2256 7168