Banking, energy and industry are the sectors where Gazprombank, the largest private bank in Russia, are exploring opportunities to finance projects in Guatemala and Latin America.
Representatives from the Russian company visited Guatemala to analyze the market and consider potential investment opportunities in sectors such as banking, energy and industry.
In the absence of concrete actions by the state, companies in the province of Limón have announced that they will promote economic development in the area using foreign investment.
In order to generate more projects to develop economic activity in the province of Limón, employers in the area are calling for foreign investors who have an affinity with the region.
The textile firm Hanes Brands has announced the construction of a power plant based on Kingras, capable of generating between 2.5 MW and 5.5 MW.
Representatives from Hanes Brands in El Salvador indicated that the purpose of the investment is "... to reduce energy demand and reduce costs. It has been estimated that the installed capacity will allow for a self-sufficiency energy level of 60% for making textiles. "
The subsidiary of the multinational company Atento has opened its third call center occupying three floors of the World Technology Center in the capital.
The company, considered one of the best places to work, with this new center has created twelve hundred additional work spaces on top of the two thousand operating so far in Guatemala.
Aejandro Reynal, president of Atento, told Prensalibre.com that "...
Stagnation in private investment has been attributed to a 26.7% reduction in the number of homes completed up to March 2014 compared to the same month last year.
The decrease in investment in the sector seems to be the main reason behind the stagnation showing in construction activities in the country, one of the main drivers of the economy.
"...Official data indicates that the growth of the overall investment was 1.6% in the first quarter of 2014. However the private sector barely grew 0.5%. A total "stagnation" is recognized by the Nicaraguan Chamber of Construction (CNC) and the Nicaraguan Foundation for Economic and Social Development (Funides). "
Employers point to political instability, energy costs and lack of infrastructure as the main factors keeping out investment and reducing competitiveness.
A survey carried out with employers by the National Association of Private Enterprise (ANEP) showed as its first result the lack of competitiveness of the country in terms of attracting foreign investment, due to uncertainty created by political instability.
A slowdown in the pace of economic activity in the country and loss of dynamism in private investment has been indicated.
Economic Situation of the second quarter of the year, prepared by the Nicaraguan Foundation for Economic Development:
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presents its second report on economic conditions in 2014, which states that in the first 4 months of this year, the economy experienced a mild slowdown. According to the 12-month average variation of the Monthly Index of Economic Activity (IMEA), growth which had been over 5 percent since April 2013, fell to 4.8 percent in April, largely due to the earthquakes in that month.
The Executive is proposing a reform of the law on exploitation of geothermal resources to extend the period of the concessions granted to foreign companies from 25 to 30 years.
In order to encourage investment in the energy sector, the reform of the "Law on Exploration and Exploitation of Geothermal Resources" , sent by President Daniel Ortega to Parliament also proposes increasing the extendable term requested from the State by companies with exploitation rights, from 10 to 30 years.
Citi Financial Group is expanding operations at its shared service center in the country, where it caters for operations of the corporation at a global level.
From a press release issued by Citi:
CITI EXPANDS OPERATIONS WITH OPENING OF "CAMPUS CITI"
The President of Costa Rica Luis Guillermo Solis joined Citi in the official opening of its new facilities.
The Guatemalan Exporters Association is asking Congress to urgently approve vital regulations to ensure better conditions for investment and the creation of more jobs.
From a statement issued by the Guatemalan Exporters Association (Agexport):
Entrepreneurs of the Guatemalan Association of Exporters, AGEXPORT have made an urgent call to Congress, for the adoption of Decree 46-44, on Investment and Employment Law in the shortest time possible due to the pervading uncertainty on the part of dozens of companies about whether or not to remain in the country and the job security for at least 80 thousand jobs, which respond to Guatemala's number one export product, clothing and textiles, as well as other manufactured products.
A plant is to be installed in Colon that will have initial capacity to extract approximately 90 thousand tons of oil per year.
Producers from the sector of Sheba, in the Caribbean department of Colón, are to invest $15.7 million in the installation of an oil palm extraction plant, projecting an approximate annual income of 4.2 million.
"A representative from the area, Edwin Rodriguez, said that the installed plant will start operations between July and August 2015 with support from the Government, entrepreneurs and equity from the farmers who are spearheading the project."
The company announced that the center will operate in a free trade area and will provide support to subsidiaries operating in other regions.
The food producer with a presence in the region will install a center for support and services called "Cargill Business Services (CBS), from where it will attend to approximately 50 of its own companies operating in North, Central and South America in areas such as information technology, human resources, finance, transportation, logistics and strategic sourcing.
The businessman Fernando Paiz has signaled his intention to increase investment in the agricultural, hospitality, energy and food industries.
Clear rules, stable economic growth and an investment-friendly environment are, according to the Guatemalan businessman Fernando Paiz Andrade, the main attractions for increasing investment in Nicaragua.
Paiz said to Laprensa.com.ni: "Nicaragua to me is a very important market.
The presidents of both countries have signed an agreement to build a $1 billion pipeline which could spread southwards in the future.
Construction of the pipeline, which will cover 600 km connecting Oaxaca in Mexico, with Escuintla in Guatemala, will be completed in a period of four years and will include a gas-fired power plant capable of generating 300 megawatts (MW).
With a loan from the Inter-American Development Bank and through means of public-private investments electricity network coverage will be expanded in rural areas.
From a statement issued by the Inter-American Development Bank (IDB):
"The Inter-American Development Bank (IDB) announced the approval of a loan of U.S. $20 million to Panama to finance a rural electrification program that will encourage public and private investment to provide services to more than 100,000 rural households.