A bill being promoted by the executive branch seeks to authorize the Bank of Guatemala to finance the capitalization of a bank when it faces problems affecting financial stability.
The aim of this initiative is to adapt the rules on financial supervision and risk control to international standards, to prevent the stability of the domestic financial system from being affected when a bank has liquidity or solvency problems.
"... The political scene continues to block structural reforms that would create a platform for more private investment and higher economic growth."
From a statement issued by the Presidency of El Salvador:
The rating agency Standard & Poor's has raised its growth forecasts for El Salvador to 2.6% for the period 2016-2018 in its latest analysis of the Salvadoran economy, in which it also reaffirmed the strength in the country's debt payment allowing it to maintain a stable rating of B + B.
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.
Noting uncertainty and political instability in the country as the main risk factor for the economy, the rating remains at BB with a stable outlook.
From the press release by Fitch Ratings:
Fitch Ratings-New York-19 June 2015: Fitch Ratings has affirmed Guatemala's long-term foreign- and local-currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Outlook. The issue ratings on Guatemala's senior unsecured foreign- and local-currency bonds are also affirmed at 'BB'. The country ceiling is affirmed at 'BB+' and the short-term foreign currency IDR at 'B'.
For the last four years the loan portfolio of the Salvadoran financial system has been growing at an average rate of 3.5%, below the 11% growth average in the rest of the region.
A report produced by the rating agency Moody's notes that growth in El Salvador's financial sector has been stagnant since 2010, as the total loan portfolio has not achieved growth rates above 3.5% per year.
In two days yields on external debt maturing in 2023 rose by 0.23% after the announcement of the departure of Intel and the Bank of America.
In addition to increasing the perception of risk in investments in Costa Rica, Bloomberg.com reports that Citi cut its growth forecast for the Costa Rican economy in 2014, from 3.5% to 3.1% and from 4% to 2.2% for 2015.
Additional provisions by banks for loans to companies in the CFZ are a "medicine worse than the disease."
The Association of Users of the Colon Free Zone (AU) fears that the bank contingency measures, ordered last week by the Superintendency of Banks of Panama (SBP), will limit bank lending to companies in the CFZ.
Fitch Ratings has affirmed its rating at BB + but points to the fiscal deficit as a credit weakness.
The rating agency Fitch Ratings announced that it will keep the BB + rating for Costa Rica, maintaining the stable outlook. However, it noted that the high budget deficit represents a weakness for the country.
"Costa Rica's ratings are supported by its political stability and strong indicators of human development and governance in relation to its peers," said a statement from the ratings agency.
The rating agency affirmed the debt rating of long-term Government Bonds of Costa Rican at "BB +", maintaining a stable perspective.
The rating agency Fitch Ratings based its decision on the stability of state institutions and strong Costa Rican social indicators, which have contributed to the foreign exchange earnings through foreign direct investment.
I have six building lots in the Punta Leona Resort ready for construction. I am looking for a partner to provide financing and or construction. Wanted partner for financing and/ or construction in the...