Many and varied are the interests which on one hand keep Panama on unwanted lists and on the other try to clean up the country's image as a tax haven.
Strengthening regulatory standards of bodies such as credit unions and the system of bearer shares are part of the changes that need to be made in the financial system in order to improve the country's position on this issue.
The two nations have been included in the list of countries with deficiencies in the fight against money laundering and terrorist financing.
The Financial Action Group, assigned to the Organization for Economic Cooperation and Development noted that Panama and Nicaragua are in breach of the recommendations that the agency provides to improve controls for preventing money laundering in the financial system.
The Central Bank of Costa Rica has submitted a query regarding the possibility of eliminating the restriction on financial institutions of varying its assets in dollars per day by up to 4% .
The Chamber of Banks looks favorably on the initiative to abolish the current limit of 4% so that more currencies can be bought and sold daily.
The Central Bank "justified in the consultation paper that the move is in line with exchange rate flexibility, to allow intermediaries to increase participation in the determination of the exchange rate, managing risk better and providing liquidity."
Tighter analysis of customers and better control of risk in lending are part of the changes that are being prepared by the financial regulator.
In 2013 the General Superintendence of Financial Entities (Sugef) began a process of regulatory changes for banks to continue during 2014. Tighter analysis of customers and better control of risk when granting loans are some of the changes being contemplated.
The fourth round has been completed with agreements made on the chapters on Rules of Origin, Investment and Financial Services.
The delegations from both countries agreed to hold a fifth round of negotiations from 18th to 21st March in Panama City.
From a press release issued by the Ministry of Economy of Mexico:
The Governments of the United Mexican States and the Republic of Panama have concluded a fourth round of negotiations for a Free Trade Agreement (FTA). This round of negotiations was held in Mexico City from 4th to 7th February 2014 and was led by Deputy Minister of International Trade Negotiations of Panama, Diana Salazar and Assistant Secretary for Foreign Trade of Mexico, Francisco de Rosenzweig.
In mid-July Fitch Ratings downgraded to El Salvador from "BB" to "BB-" and only a day later downgraded the rating for the Banco Agrícola from "BBB-" to "BB +" and that of Davivienda from "BB to BB-" .
The downgrading of the country by international rating agencies has spread to private banks such as the Agrícola and Davivienda who also had their ratings downgraded.
A banker says that due to government financial regulations, in Honduras "it is now easier to import than it is to cultivate and produce."
Proceso.hn reports that "Excessive government regulations are preventing banks from lending money to promote production, as they has to deal with rules made for the first world even though Honduras is a fourth world nation, said the banker Jaime Rosenthal."
Banking and financial sectors have raised the need to devise a strategy to turn the country into an international financial center.
Alberto Diamond, Superintendent of Banks in Panama, said that as a society, they should establish a plan which involves the private sector, the public sector and the regulator. "We need to make a road map," he said.
Prensa.com reports: "The goal, ultimately, is to develop and integrate the capital, securities, insurance and banking markets, creating a system capable of supporting large and small projects, and whose natural vocation would be Latin America."
The BCIE has granted an additional $3 million to Desyfin's global credit line, meaning that the total amount it now has reaches $10 million.
With this money Desyfin will finance "programs to support micro, small and medium enterprises, financial intermediation programs for social housing, the housing and urban improvement program, and factoring products for suppliers," explains Nacion.com.
A court ruling states that the complaint filed against the financial company was untimely, considering that the SMV learned about the facts deemed irregular from information that was received, and not when it was analyzed.
From a statement by the Superintendency of Securities (VPS):
PUBLIC NOTICE
For the respect that the general public deserves, especially the investing public, the Superintendency of Securities (hereinafter SMV), the regulator and supervisor of the Panamanian stock market, believes it is necessary to make a statement on some news that has recently taken up important space in various media concerning the Complaint filed by this SMV and which was sent to the Public Prosecutor Office of the First Judicial Circuit of Panama against the brokerage firm Financial Pacific Inc., its former directors and any others that may be linked to it.
Private banks operate with margins between interest rates which are considerably lower than state banks.
An article in Elfinancierocr.com points out that "the five banks with the lowest margins in the country are private ones, as is clear from a study by EF based on data reported to the Superintendent of Financial Institutions (Sugef) for December, 2012 ".
Central American financial institutions are offering their customers new financing alternatives.
The firm Invermaster has indicated that some seventy banks have $500 million to invest in companies in the region.
"One alternative that has gained importance, according to Invermaster, is 'mezzanine financing', an intermediate instrument between traditional debt and equity investment.
The Central Reserve Bank of El Salvador has announced in a statement the entry into force of the usury law on February 24.
A statement from the Central Reserve Bank of El Salvador reads:
The usury law, which aims to "prohibit, prevent and punish usurious practices, in order to protect the rights of ownership and possession of the people", entered into force on 24 February this year, informed the Central Reserve Bank of El Salvador.
The Central Bank of Nicaragua has revealed its monetary and financial report for December 2012.
Financial System:
In the month of December the SFN ‘s process of normalization of liquidity continued, which was reflected in the ratio of availability to deposits of 28.1 percent, partly linked to the pace of credit growth which was around 30 percent. Meanwhile, deposits showed a growth of 5.5 percent.