Sovereign Risk in Central America

Quarterly Report by the Executive Secretary of the Central American Monetary Council, June 2009.

Wednesday, July 8, 2009

General Situation
During the first months of the year, there has been a deterioration in some economic indicators like foreign investment, remittances and external trade. Based on this, the Executive Secretary estimates that the consequences of the international crisis were felt the most in the CA-RD region in the first third of the year, situation that could worsen further in the coming months, depending on what happens in the international stage.

This deterioration, together with a drop in tax collection caused by a fall in output in levels not seen before, has forced some governments to embark on important efforts to obtain fresh resources to cover their budgets, as they also review subsidies, tax exception, and pension programs, or do a tighter control of economic activities that did not pay taxes before.

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From a statement issued by Fitch Ratings:

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Fitch Upgrades Ccsta Rica to 'BB+'

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Quarterly Country Risk Report: June 2010

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