International Hospital Corporation Holding has sold its stake in Mexican hospitals in order to explore investment opportunities in Central America.
Gary B. Wood, CEO and Chairman of the Board of International Hospital Corporation Holding said the decision was taken because they prefer to redirect resources to operations in Central America and Brazil, as well as any opportunities that may present themselves in the future.
The event organized by Latin Markets will be held in Panama from 28th to 29th of January 2014.
The event, organized by Latin Markets, will include the participation of 60 experts in the field, who will talk about how companies can participate in the development of dozens of key infrastructure projects in the region.
Participating employers will have access to more than 300 executives and experts in the subject through business meetings with companies involved in the industry.
On December 4th Fitch Ratings will hold a conference entitled 'Challenges and Opportunities for Structured Finance and Infrastructure in Central America and the Caribbean.'
Securitization of Assets, an Option for Capital Markets in the Region, is one of the subjects to be discussed in the event's agenda. Participants will include Marielena Garcia, SVP of Investment Banking at MMG Bank Corp, Alberto Gutierrez, president of Titularizadora Colombiana, John Rauschkolb, General Manager La Hipotecaria and Diego Torres, vice general manager of BHD Valores Puesto de Bolsa.
The Stock Exchange of El Salvador promotes investment in stocks and bonds and there is a noteworthy rise in trusts to finance large infrastructure projects.
The Stock Exchange of El Salvador (BVES) carried out a campaign to promote the tools that allow participation in that market. Rolando Duarte, chief of the BVES says that "people are familiar with the exchange, but there are some fears and ignorance which we want to eliminate."
A short-term plan is being prepared to improve the investment climate and lift objections from U.S. Congress to fund the delivery of the Millennium Challenge Corporation
The information was confirmed by the U.S. ambassador to El Salvador, Mari Carmen Aponte. Both governments are working on concrete actions in the short term to allow for these improvements.
Countries such as Costa Rica, El Salvador and Panama may use purchasing subsystems for projects financed by the bank.
From a press release issued by the Inter-American Development Bank (IDB):
Argentina, Bolivia, Costa Rica, El Salvador, Jamaica, Panama, Paraguay and Peru may use purchasing subsystems for Bank-financed projects.
The approval is part of the efforts of countries to improve their management systems for procurements, a market which represents about $800 billion in the region. Several indicators show the benefits of these efforts in recent years, for example, electronic access to the market for government procurements, which allows 70% of contracts to be accessible via the Internet.
In January, the island will open a Special Development Zone, where both foreign and Cuban companies will enjoy tax and service benefits.
With an investment of $900 million, the new area will be open next January and will be located near the Gulf of Mexico and linked geographically to the Panama Canal.
The new Special Development Zone, announced by the Minister of Foreign Trade and Foreign Investment, Rodrigo Malmierca, covers about 475 square kilometers in the port of Mariel, 50 miles west of Havana.
El Salvador's Vuelos Económicos Centroamericanos and Costa Rica's Ticos Air and Ticas Airlines are in various stages of preparation and registration to offer flights in the region.
Vuelos Económicos Centroamericanos (CASI) reported that it has leased two Airbus aircraft and will invest nearly $100 million in order to start operations in March 2014. The company is interested in creating a market in the low-cost segment and not competing with airlines such as Avianca and Copa, said Edgar Hasbun, CEO of the company.
The Road Maintenance Fund of El Salvador launched a second sale of securities worth $50 million on the stock exchange.
In May the Road Maintenance Fund (FOVIAL) had already raised $50 million and it is now looking for more funds with a new securitization this week.
This fund, just like the first one, will be placed in two tranches, the first "... for a period of 14 years, for $35 million, with a grace period of six months before starting the repayment of the principal along with quarterly interest payments" reported Prensagrafica.com.
Workers savings in El Salvador are being invested in government securities with low returns.
Laprensagrafica.com reports: "Pension Fund Administrators (AFP's by their initials in Spanish), have invested between 70% and 80% of the fund in public debt from different institutions. The central government uses this money to pay those who retired under the previous system." However, profitability has been low, this is because the law hinders the AFP's options.
Since 2007 Colombian bankers have made progress in the region, led by Bancolombia with $3,216 million and Grupo Aval with $2.821 million.
For example, in Panama they have operations with "... large international banks because it is considered a tax haven, where it is possible to make investments and transactions swiftly and without a lot of questions being asked by local controlling entities," noted an article in portafolio.co.
NanYang Footwear is to invest $3 million in the country to produce footwear and export it to other markets.
From a press release from the Presidency of El Salvador:
The Taiwanese company engaged in the manufacture of footwear NanYang Footwear, in a clear commitment to El Salvador, started operations in the country by establishing and expand its subsidiary in the country under the name of ADI FOOTWEAR SA de CV, with an initial investment of $1.5 million, plus plans to invest an additional $1.5 million and carry out an expansion which will generate more than 1,000 new jobs over the next year.
The Economic Committee in Congress has agreed to pass a law that will enable collateral such as merchandise or intangible assets such as patents to be used to obtain loans.
The law will facilitate the process for natural and legal persons to apply for loans using collateral such as their properties, tools, patents, trademarks and merchandise. "It protects consumers more, is more respectful of consumer rights, is much fairer and avoids abuses," said the congressman, Francisco Zablah.
The Millennium Challenge Corporation has approved a second disbursement of funds for $277 million, aimed at developing the country's coastal area.
Now the decision rests with the U.S. Congress who will have to give an answer in 15 days. "... The MCC confirmed that its board has approved a pact for $277 million over five years. The Salvadoran government will contribute $88.2 million in the same period.
The stagnation of competitiveness in Latin America demonstrates a need for structural reforms and investments which increase productivity.
• The Global Competitiveness Report 2013-14 indicates that competitiveness is stagnating in Latin America and reforms and investments to ensure future economic growth are long overdue.
• Excellence in innovation and robust institutions are increasingly important factors for achieving competitiveness.