The impact of the strike, the uncertainty of the fiscal situation and the increased risk perception by investors and consumers, explain much of the depreciation that the Colon is suffering against the dollar in Costa Rica.
Figures from the Central Bank of Costa Rica (BCCR) suggest that between September 27th and October 5th the exchange rate in the wholesale market Monex registered a significant upward trend, which is reflected in the increase from ¢570.75 to ¢591.25 per dollar, equivalent to a depreciation of 3.59%.
At the end of October 2013 the number of cards in circulation amounted to 1,723,306.
A press release from the Ministry of Economy, Industry and Trade of Costa Rica reads:
Costa Ricans owe in total $1,496 million in balances on credit cards, which is an increase of $21.5 million (1.46%) compared to the latest study by the Directorate of Economic and Market Research, according to the cut made up to October 31, 2013.
Examples of paralyzed investments and the pre-election environment in the Salvadoran banking sector.
After over 4 years of the current administration a high level of uncertainty is being reflected which affects all sectors, especially for potential new investments.
In light of the upcoming presidential elections Eduardo Quevedo, the president of Promerica bank is calling for clear rules for investors, improvements to the education system, and a better business climate.
The difference in the interest paid by banks on deposits and loans can be as much as 22%.
Intermediation margins are a measure how a financial sector performs its mediation role and is one indicator of efficiency. Though there are various ways to calculate the figure, Costa Rica's margin is higher than in other economies.
Gabriela Mayorga López in Elfinancierocr.com comments on a study from the Costa Rican Banking Association (ABC in Spanish) that indicates that in June, "Banco Promérica recorded the largest colones margin with 21.8%. It was followed by Citi with 14.3% and Banco General with 14%. Banco Popular had the highest dollar margin with 7.8%".
The private bank has been part of Promérica Financial Group since 2007. The image change will strengthen the bank's identification with the group.
Promérica Group operates in every Central American country, Dominican Republic and Ecuador, with over 175 offices and one million customers.
According to Prensalibre.com, the manager of Promérica Bank said at a press conference: "This step is the process of a planned change to be closer to our customers and respond to market needs."
The Superintendent of Financial Institutions of Costa Rica reported that the repossession of property for unpaid debts rose 77% from February 2008 to February 2009.
The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.
To facilitate the sending of remittances from El Salvadoreans living abroad, three companies are getting together to provide a new service.
The companies are the telecommunications firm Claro, the Promerica Bank and the credit card company Prepago Cardmarte.
The first customers of this new alliance will be residents of Los Angeles, and the service is expected to extend throughout the U.S.