The presidents of various Guatemalan unions have asked the Monetary Board not to authorize the issuance sought by the state.
According to representatives of the Chambers of Agriculture, Industry and Commerce associated with the Committee of Commercial, Industrial and Financial Associations (Cacif), this action "will affect the macroeconomy and increase the fiscal deficit."
The Law on FONAVIPO Investment Certificates exempts the institution from registering as a securities issuer and from rating the risk of its bonds.
The Law passed a few days ago bailsout the Fondo Nacional de Vivienda Popular (Fonavipo).
... "The measure contradicts the current Law on the Pension Savings System, indicating that AFP's can not acquire financial instruments which are "low grade", as is the case of FONAVIPO securities to be issued since July, with the institution being graded by Fitch Ratings as "D" with low ability to pay ", reported Elsalvador.com.
Rumors are that the U.S. Federal Reserve is preparing to reduce its bond purchase program, motivating the sale of bonds in emerging markets.
"A rise in bond yields in developed markets and a better prognosis for the U.S. economy are making bonds from the emerging countries, from Turkey to Chile, seem less attractive. On Friday, currencies, bonds and shares in these markets fell significantly," noted an article in Wsj.com.
The Central Bank of Costa Rica has reported that as of May 30, the base rate will drop 0.5% after remaining for three consecutive weeks at 6.70%.
This is the lowest percentage achieved in the last four and a half years, in which the lowest rate was 6.75%.
"The reduction was due in part to a decrease in average deposit rates at public commercial banks, which went from 6.11% to 6.08% and these entities have the most weight in this calculation", reported Elfinancierocr.com.
The agency believes that the investment rating is on shaky grounds due to the lack of progress on reforms to mitigate fiscal deterioration.
According to Gabriel Torres, principal analyst on sovereign debt, if a new tax bill is not created "it is likely to have a negative impact on the rating, a change in perspective."
As yet the agency has not provided its country report for this year, as they are waiting for a sign of change.
Falling gold prices in the international market are worrying the mining sector, but are not a reason to stop investing in the country.
In an interview in Laprensa.com.ni by Lucia Navas with Pablo Venturo, B2Gold's country manager, the official explains how the company's operations are in Nicaragua and their expectations for the future.
According to Venturo, recently there has been a significant drop in international prices, however, they are waiting to see what the trend will be over the next few months. "When we started operations in the country in April 2009 the price of gold was $850, since then there was an upward trend reaching its peak in 2011. In 2009 we started with major investments such as the acquisition of properties and the reconstruction of Mina La Libertad, which helped double production from forty thousand ounces a year to its current capacity of 130 thousand ounces. That was an investment of $74 million between 2009 and 2010. That investment has allowed us to maximize our revenue this year and leaves us ready and in a robust position to face a complex future. "
It is vital for the nation's economy that an agenda on Information and Communication Technologies be developed, accompanied by the relevant legislation.
Peter Argumedo, senior researcher at Fusades called for swift approval in the Legislative Assembly of the draft laws related to computer security, in order to promote an investment climate. "An economy must be competitive so that it can be linked to global production chains.
The Government will be seeking support from the private sector in order to create an antiextorsion model in order to initiate an attack against those who commit this crime.
"We will have a meeting with them in order to examine the possibility of forming an antiextorsion board. We are looking not only for economic contributions, but collaboration for us to pave the way and create more confidence with entrepreneurs who experience extortion so that they will denounce it" said David Munguia, Minister of Justice and Security.
While the outlook is expected to improve at the international level, the mining industry in Nicaragua has announced that it is prepared to withstand the collapse of gold prices.
According to Pablo Venturo, B2Gold mining manager, the investments of about $400 million which have been implemented over the past four years has allowed them to be ready today for the collapse of gold prices in the international market.
The slowdown in the economy and rising labor costs are reducing the competitiveness gap that the Asian giant has with other countries.
Investment in China rose by 17.4% in 2010 and 9.72% in 2011, however, official data from the Ministry of Commerce shows that foreign direct investment in 2012 totaled $116.010 billion, representing a decrease from the previous year, in this case of 3.7%.
Salvadoran businessmen have pointed out that the agreement which intended to stimulate the economy and overcome obstacles to growth, has not provide great results.
Although it is more than a year since implementation of the agreement, the private sector finds it necessary to involve private enterprise more in order for the government to generate better policies to attract investment.
An article in the Financial Times notes that Managua should be considered as a strategic place to invest in.
"The intelligence division of the Financial Times this week published its ranking on the American cities of the future and found that Managua in Nicaragua, one of the poorest countries in Latin America, should be considered as a strategic place in which to invest," reported Elnuevodiario.com.
The business sector is calling on Congress to pass the bill which charges a 30% tax on interest gained by speculative capital.
From a press release issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) is urging MPs to approve, as soon as possible, the bill which levies a 30% tax on interest earned on speculative capital, which was ruled on in February by the Committee on Financial Affairs.
The Central Bank of Nicaragua has revealed its monetary and financial report for December 2012.
Financial System:
In the month of December the SFN ‘s process of normalization of liquidity continued, which was reflected in the ratio of availability to deposits of 28.1 percent, partly linked to the pace of credit growth which was around 30 percent. Meanwhile, deposits showed a growth of 5.5 percent.