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."
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.
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."
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
7567Government Procurement Opportunities in the region