Two months after reducing the rating from B + to B, Standard & Poor's has now reduced the note to B-, with a negative outlook.
From a press release by Standard & Poor's:
El Salvador's liquidity has deteriorated significantly because of protracted negotiations between the government and opposition parties on a comprehensive set of fiscal reforms that has weakened debt management.
JPMorgan Chase says that "the real economic consequences of this (Panama Papers) fiasco are not going to be all that severe," and recommended buying Panamanian sovereign bonds.
The investment bank JPMorgan Chase believes that all of the factors that have sustained economic growth in Panama are still present, and if Panamanian sovereign bonds have underperformed this year as a result of greater aversion to risk after the Panama Papers scandal, then investors should "buy Panama".
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.
Knowing how to laugh at yourself is a virtue that every entrepreneur in Costa Rica should have, even though it might all end in tears.
This is what Alfonso Carro does in his article on Crhoy.com: laugh at himself, at the same time bringing to light the helplessness felt in light of the deteriorating conditions for investment in an economy such as Costa Rica, which was once number one in Central America.
A call is being made to professionals in the area of auditing and risk management to attend the first Latin American Seminar on Governance, Risk and Control on April 14 and 15 in Panama.
The Latin American Foundation of Internal Auditors (FLAI) and the Institute of Internal Auditors of Panama (IAI Panama), in partnership with the Institute of Global Internal Auditors (IIA Global) is convening the first Latin American Seminar on Governance, Risk and Control - SELAT GRC 2016 , on April 14 and 15 to be held in the Hotel Riu Panama Plaza, reported Panamaamerica.com.pa.
The rise of interest rates in US is one of the reasons behind the lower demand for Costa Rican debt bonds, which are perceived as riskier because they are not investment grade.
When US interest rates began to fall, international investors sought riskier options and performances, such as external debt bonds rated below investment grade in countries such as Costa Rica. Now that an increase in US rates has been confirmed, investors are beginning to abandon riskier options to move to others which have equal or better performance but with lower risk.
The Altara El Tucano project has stopped paying its investors and is to execute the Guarantee Trust.
After the deadline of 30 working days provided to the settlor Altara The Tucano to provide the resources to pay obligations owed to the trust, the administrator, Scotiabank announced the execution of the guaranty for non payment.
Still far from reaching the pre-crisis level of 2004, the number of investors has increased driven by process improvements and lower minimum investment amounts.
Data from the General Superintendence of Securities (Sugeval) reveals that 2013 closed with a total of 49,945 investors, 6,124 more than last year. However, the fund market is still below the more than 67,000 investors who participated pre the 2004 crisis.
77% of Costa Rica state Pension Investment Fund are in bonds, whose finances in 2013 have a deficit of 5% of GDP.
Nacion.com reports that the Pensions Superintendency (SUPEN) has warned about the situation, noting that "the high background concentration of Disability, Old Age and Death (IVM) funds in a single issuer is a risk factor."
The complicated Honduran political and institutional climate is creating confusion about the role of the Commission for the Promotion of Public-Private Partnerships.
In an article in Laprensa.hn, Jose Antonio Pineda, president commissioner of the Commission for the Promotion of Public-Private Partnerships (Coalianza), when asked if "Coalianza, concessions, sells or privatizes?", responded that "we do not really do privatization because it involves transfer of assets or property of the State to private companies. We do not do that. Assets such as ports, roads, and airports always belong to the State. We form a public-private partnership (PPP) contract, where a private company invests capital in institutions, as these do not have capacity to invest themselves. It allows the investor to manage it for a period of time in order to be able to recover their investment. "
When choosing a destination for their investments, Panamanian businessmen see poor conditions for both physical and legal security in Honduras.
This was explained by the Panamanian ambassador in Honduras, Mario Ruiz, adding that lately, trade between the two nations has had difficulties because of the issue of insecurity which "has affected business and has generated concerns about continuing to invest".
$500 million is the estimated amount that has not been invested due to bad business climate, poor image and lack of institutional credit, which frightens investors away.
These are the indications of the economist and former president of the Central Reserve Bank, Mauritius Choussy: "In four years, the amount lost adds up to $2 billion, which could have generated more than 150,000 jobs. Choussy made this calculation based on the idea that one job is generated for every $20,000 invested, approximately ", reported Elsalvador.com.
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PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
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