The new regulations for the operation of public work trusts contains provisions which make the process too cumbersome.
Meanwhile, only in Banco Nacional (BN) and Costa Rica (BCR), projects which are held up due to approval for funding through trusts reaches $ 2,760 million. The projects being held up are construction of public works.
A court decision removed the obligation to collect commission on early fund recovery or to enforce minimum periods of investment for those funds.
The measure had been adopted by the Supervisory Board of the Financial System (CONASSIF), amending the General Rules on Mutual Funds Investment to prevent investors without the appropriate profile from entering into long-term funds.
From today BCCR sets the Deposit Rate ('Tasa Básica Pasiva') rises 0.25 percentage points to 7.75%.
The interest rate hit its lowest rate in two years last week when it was set at 7.5%.
Juan Pablo Arias, writing for Nacion.com, comments that, "on 19 August, Costa Rica's Central Bank (BCCR) cut the rate used to manage monetary policy to 7.5% and also reduced rates that apply to deposits offered online via Internet".
Four years after the de-monopolization of the market, the National Institute of Insurance holds 91.5% of insurance premiums and 12 private insurance companies have won the remaining 8.5%.
An analysis of the topic made by Juan Pablo Arias in his article in Nacion.com, shows that the main benefit of the new competitive environment is growth of the sector in terms of policies issued, which increased by 24% from the date of de-monopolization, with growth attributed to the lowered rates.
When talking about how well the Latin American economy is doing, there should be a note added: "except Central America and the Caribbean countries."
In the interview to Humberto López, Chief Economist, World Bank (WB) for Central America by Juan Pablo Arias of Nacion.com, he reflects: "Central America in 2010 grew much less than South America and for 2011 it expects a lower growth rate than the south of the continent. When Asia is doing well, Central America and the Caribbean are not doing so well because they are competitors. The expansion of Asian exports in the U.S. is shifting, in part, Central American exports. Moreover, commodity prices are rising and that's good for South America because they are producers.
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