Costa Rica: No Progress For Law Against Speculative Capital

The bill which taxes interest generated by speculative capital has been stalled because it respective Legislative Commission has not been formed yet.

Thursday, May 16, 2013

Edgar Ayales, Finance Minister recalled the significance of the future law and added that the problem could take three or four weeks.

"This is because, according to the vice minister of the same portfolio, Randall Garcia, they have not yet officially named the new team for the Treasury Commission, which manages the topic", reported

Congresswoman Patricia Perez affirmed that the project is stalled for that reason despite it having a good "climate". However, Perez said that the bill could end up hurting "positive" capital inflows entering the national economy, such as foreign direct investment (FDI).

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The steady flow of investments that came into the country in 2012 and part of 2013 has been reversed.

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Costa Rica: A law Too Late

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A year after first being proposed, and under different economic conditions, progress has been made on the adoption of the law to discourage "hot" capital.

From a press release issued by the Legislative Assembly of Costa Rica:

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