Costa Rica: Investment Funds for Public Works

A proposal has been made to extend the concept of real estate development funds to cover public and private projects for all types of infrastructure.

Thursday, March 10, 2016

If the reform to the General Regulations on Management Companies and Investment Funds is approved, any investment project, from building houses to hydroelectric stations, will be able to be financed and developed through a special investment fund, that fund which would be called the Fund for Investment Infrastructure Projects.

Elfinancierocr.com reports that "...Originally, the concept of a real estate development fund was conceptualized in order to build on acquired properties, however, on several occasions the market has expressed the need for a type of mutual fund that allows new investment projects to be developed, with a broader concept. "

According to Victor Chacón, director of the Chamber of Investment Funds (CAFI), "... the concept could be used to develop hydroelectric projects, data centers and infrastructure. For example, it could be used for the development of a project in consultation with the State, where it owns the land, but the fund is responsible for implementing the project itself, whether it be a school, hospital, or any public or municipal infrastructure."

Read full proposal.

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

Investment Funds in Public Works

August 2016

In Costa Rica new investment funds for development projects are a good alternative to remedy the serious deficiencies in public infrastructure affecting the country.

From a report by Fitch Ratings Central America:

Fitch Ratings - San Jose - (August 24, 2016): The rules on investment funds in Costa Rica incorporate the concept of Investment Funds for Development Projects (FDP) as an alternative to expand financing options (via placement of shares from an FDP). This type of fund can be used in public and private infrastructure projects, as well as in real estate developments (whether they are residential or commercial ones), among other projects.

Costa Rica: More Flexibility in Management of Investment Funds

October 2013

The adjustments to the rules that will come into force will make the financial sector, which had become stagnant, more attractive.

Among the major changes is a minimum of two people making up the members of a mutual fund, rather than 50 as stated in the aforementioned regulations.

Changes Ahead for Costa Rican Stock Market

September 2013

The Superintendency of Securities projects there will be adjustments to regulations on investment funds, IPO, market intermediaries and infrastructure.

Elfinancierocr.com reports that "... the changes have goals such as modernizing the market, trying to make it more dynamic and giving appropriate treatment or investor protection."

Costa Rica: Venture Capital Funds

July 2011

The proposal to finance small enterprises using venture capital remains stalled.

Since last year, authorities have been analyzing financial market regulations that support the creation of the framework and its use for small businesses.

The delay, they say, is because they want to analyze every aspect of it, especially with regard to the risks, believing it could its use could become popularised among investors that do not meet the profile.

ok