Unions are opposed to the legal reform which aims to extend the scope of the supervision of the Superintendent of Financial System over savings and loans cooperatives.
In the view of Julio Cesar Portillo, secretary of the board of the National Commission for credit unions in El Salvador and CEO of Co-Andes de R.L. ,"... the reform presented to the Legislature, seeks to impose on savings and loans cooperatives a framework of regulation and supervision which is exclusively for private financial companies and for-profit institutions such as banks. "
The reduction from 20% to 3% in the tax on stock profits was not enough to prevent trading on the secondary market in the first quarter of the year falling by 94%.
Noting the political system's inability to agree on fiscal issues, Standard & Poor's has downgraded, from BB to BB-, the rating for the country's long-term debt, giving it a negative outlook.
Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative
25 Feb 2016
Source: Standardandpoors.com
OVERVIEW
The combination of growing spending pressures and lack of tax reform has weakened Costa Rica's public finances and raised its vulnerability to
On January 26, the Ministry of Finance will be auctioning in the local stock market $25 million in Treasury bills with maturities of between 316 and 346 days.
From a statement issued by the Stock Exchange of El Salvador:
Lowering the tax on transactions for non-domiciled investors from 20% to 3% had a positive effect on the performance of the stock market in 2015, which grew by 6% compared to 2014.
The forecast made by Rolando Duarte, president of the Stock Exchange of El Salvador (BVES), is that this type of investment will continue to grow, thanks to the incentive which was first implemented in 2015.
The interest rate rise in the US and the perceived risk of the Salvadoran economy have taken their toll on foreign debt bonds, whose yields have risen by about 2% in recent weeks.
This increase in yield of debt securities traded on the international market will be reflected in the forthcoming issues made by the government, which, according to economic analyst Mauricio Choussy, "... 'will no longer be sold for seven percent or six point five, which was the levels achieved previously, but rather will go for a higher interest rate, at eight percent. '"
A reduction from 20% to 3% has been made on withholding tax on income from investments in securities traded on the local stock market.
From a statement issued by the Financial Supervisory Authority:
Recently, the Legislature approved a decree amending art. 158 of the Tax Code in order to decrease from 20% to 3% withholding tax to foreign persons or entities charged on income from investments in securities traded on the Stock Exchange in the Republic of El Salvador.
An agreement has been announced which will allow Salvadoran and Panamanian investors to buy securities on the stock exchange of the other country without them being registered in both markets.
The stock exchange authorities announced that the agreement implies that each recognizes the other's jurisdiction, allowing a "... Salvadoran investor to order their brokerage house to purchase a share in the Panamanian system directly and deposit the money system in custody in Panama . "
In the first three months of the year $977 million was traded on the stock market, $300 million more than in the same period in 2014 .
The primary market reported $99.6 million traded during the first three months of 2015, ie, $14 million less than the amounts recorded in 2014.Meanwhile, the secondary market recorded transactions of $136 million, which is $88 million more than reported in the same period of 2014 .
Small investors have bought $15 million in shares ranging from $1,000 to $20,000, from a trust that will finance a wind project in Uruguay. Another $62 million will be offered to institutional investors.
EDITORIAL
The offer received in the Uruguayan Securities Exchange from small investors reached $100 million, a clear sign of the high interest in the prospective investment which has a mitigated risk as it is a project by a strong state run enterprise, with a return almost assured, estimated at about 11.5% a year, in the 20 years which is the term of the share certificate.
The government has placed on the international market an issue due 2027 at a coupon of 6.375%, with offers that exceeded the amount placed by 5.8 times.
From a statement issued by from Presidency of El Salvador:
(Thursday 11 September) the Republic of El Salvador made a successful placement of sovereign bonds (Eurobonds) in the international market to the tune of $800 million, covered by Legislative Decree No. 711 of June 12, 2014, published in the official newspaper La Gaceta on 20 June of the same year.
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