After El Salvador approved a legal framework that recognizes Bitcoin as a legal tender, the cryptocurrency exchange Coincaex announced that at the end of June it will open an office in the country.
Following the approval of the Bitcoin Law in El Salvador by the members of the Legislative Assembly, which creates a legal framework that recognizes this digital currency as legal tender in the country, the IMF warns that financial and legal risks have arisen.
Following the approval of the Bitcoin Law in El Salvador by the deputies of the Legislative Assembly, there is now a new legal framework that recognizes this digital currency as legal tender in the country.
The President of the Republic, Nayib Bukele, sent to the Legislative Assembly, through the Minister of Economy, Maria Luisa Hayem, the bill to allow the use of Bitcoin in the country.
Given the outbreak of covid-19 and the imposition of restrictions on economic activity, between February and June of this year the amount of loans granted by the banking sector reported a 1.2% drop.
Data from the Superintendence of the Financial System (SSF) indicate that between February (the month before the beginning of the health and economic crisis) and June of this year, the credit portfolio contracted by $149 million, from $13.276 million to $13.127 million.
At a regional level, nearly 16 million people are looking to purchase financial services online. Of this group of consumers, approximately 11% are exploring options for acquiring a credit card.
The interactive information system developed by CentralAmericaData, monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
Financial companies expect that sometime before March 30 regulations of these investment instruments whose law was passed last year will be published.
It is expected that in the second half of the year the first fund management companies will be operating, once the legislation being prepared by authorities for the financial market is made known in detail.
The BVES anticipates $100 million of securitization processes in 2012, nearly triple the $39 million securitized in 2011.
The president of the Stock Exchange of El Salvador (BVES), Rolando Duarte, said that this year the securitization of assets or future cash flows of private and public companies would total about $100 million, reported ElSalvador.com.
Leasing is growing as an ideal financial instrument to dispossess of assets while incurring lower costs and obtaining financial benefits.
In El Salvador, the usage of this mechanism has increased since 2002 when the Financial Leasing Law, which set clear leasing rules, was approved.
In these times of financial crisis, when access to credit has become more and more difficult for businesses, the leasing of production assets such as transportation, machinery, computer equipment, and full payment with cash rather than increasing debt permits businesses to designate available working capital to other purposes while reducing financial and tax liabilities.
With banks barely lending and interest rates up, each company should review their available financing options.
Most small and medium company are not able to use existing instruments which are out of their reach and can mainly be used by investment bankers and financial consultants.
For companies that need to borrow a lot, which may be from $2 million up, offering bonds in the stock market may be an attractive option.
Having incorporated new investment options, the stock exchange is looking to motivate investors to participate more actively.
Some of the new changes include new issuers from non-traditional sectors such as bonds from La Hipotearia (a company that is dedicated to the creation, charging and securitization of mortgages at the regional level), investment certificates by the Hipotecario (Mortgage) Bank, not to mention trading of US stocks.
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