The new tax reform proposal being discussed in Costa Rica raises capital gains tax from 8% to 15%, and also excludes recognising as a debt deposits made by issuers in the securities market.
In the view of the National Stock Exchange (BNV), not recognizing deposits made in the stock market as debt leaves it at a clear disadvantage, compared to banks, as a source of financing for companies.Not only does it compromise access to investors' savings, it also significantly limits companies and individuals investment options.
The Superintendency of the Securities Market will start asking for a risk rating in all applications for registration of securities.
From a statement issued by the Superintendence of the Securities Market:
May 10, 2017. - The Superintendence of the Securities Market (SMV) will require a risk rating as part of the documents that must be included in any application for registration of securities, in accordance with the provisions of Agreement 3-2017 of April 5, 2017, "Amending Agreement 2-2010 of April 16, 2010 on the Procedure for the Submission of Applications for Securities Registration and for Termination of Registration to the SMV and other provisions" published in the Official Newspaper La Gaceta No. 28259-A of April 17, 2017.
Trading volume last year reached $1.526 billion, 30% more than what was traded in 2015.
The repo market accounted for most of the volume traded in the stock market in 2016, with an increase over 2015 of 33%.The volume traded in these instruments was 382 million, while in 2015 $289 million was traded.
Issuances registered between January and September 2016 exceed 60% of the total issuances registered throughout 2015, and projections are that the year will close with $7 billion traded in the local market.
The scandal generated from the leaked information about the firm Mossack Fonseca, "Panama Papers", and the questions about the lack of financial transparency that arose afterwards, do not seem to have affected the attractiveness of the stock market for providing finance to companies through the issuance of securities.
Between January and June registrations of securities issues amounted to $4.2 billion, up from the $2.944 billion recorded in 2015.
If the number of new issues registered with the Panamanian Stock Exchange continues to grow as it did in the first half of the year, the figure at the end of 2016 will be the highest in historical terms, surpassing the record of 2013, when $3.579 billion was recorded.
The Panamanian company whose emissions were suspended in September 2014, has amended the terms of its bonds for $8 million, extending the deadline to 2019 and agreeing to pay principal and interest in tracts.
From the resolution issued by the Superintendency of Securities:
"... Single Article: The amendment to the terms and conditions of the issuance of corporate bonds for an amount of $8 million, approved by Resolution No.
Last year the amount of transactions recorded was $997 million, with highlights including 32% growth in trading in the primary market.
The good performance of the Nicaraguan economy has been accompanied by a sharp rise in the stock market, where a significant dynamism was seen, mainly in the primary market where securities have been traded for the first time.
An announcement has been made that in the short-term auctions of securities by Panamanian State will no longer be made in the local market and instead will be carried out through the Bloomberg platform.
Given the lack of investment in technology on the part of Panama stock exchange, the government has announced that it will begin making the auctions using the Bloomberg platform. The will allow for more transparent transactions by the State.
For "breaching the obligations of the issuer" the Stock Exchange has suspended indefinitely trading bonds and VNC's by the financial company La Generosa.
From a statement issued by the Panama Stock Exchange:
"... We wish to inform the public that, in addition to the suspension of trading of corporate bonds by Finanzas y Créditos del Hogar, S.A., for $ 4 million, effective yesterday, the stock market in Panama has decided to suspend from today and indefinitely, negotiation of corporate bonds and commercial negotiation values (VCN's) by the issuer listed on the Exchange.
The subsidiary company of Panamá Power, operator of the hydroelectric El Alto, is seeking financing through a six year term bonds placement in the Panamanian stock market.
Hydro Caisán published on the website of the Stock Exchange of Panama the preliminary prospectus of the issue, which details the characteristics of the placement and the uses for the $90 million it seeks to raise.
In the first six months of the year $3.250 million were traded, which is an increase of 33% compared to the amount traded in the same period in 2013.
The primary market, where fist time issues of shares and debt securities are recorded, had the most activity, with trading of $414.61 million between January and July 2014.
Laestrella.com.pa reports that "...In the case of the primary market in the month of July 2015, background shares reached $20.72 million, preferred shares $2.59 million, bonds $154.73 million and mortgage bonds $75 million."
The amount of trade between January and June this year represents 53% of total traded in the market during 2013.
In the month of June 2014 alone transactions in the securities market of Panama totaled $469.7 million, with the primary market, where new issues are made, being the most important, with 53% of the total traded.
"... In the first six months of the year the total cumulative volume of the market represents 53% of the proceeds from all of 2013. Whilst January to June $2,671.8 million was accumulated, from January to December 2013 the figure was $5,018.8 million. "
Hydro Caisán requested permission for its second corporate bond issue which it aims to use to restructure liabilities.
After having completely placed a $130 million bond issue in 2012, the company Hydro Caisán, SA has asked the Superintendency of Securities (VPS) for approval for a new issue of up to $90 million, with the aim of paying off in advance the existing bonds of Generadora Pedregalito, S.A. and Generadora Alto Valle, S.A
Between January and April transactions on the Stock Exchange of Nicaragua were registered worth $439 million, more than the $326 million traded in the same period in 2013.
Bonds issued by the Central Bank of Nicaragua are among the most attractive securities, with over $20 million in volumes traded in April alone, according to the Stock Exchange of Nicaragua (BVN).
A bill aims to facilitate access by companies to the capital market allowing operations in more than one stock market.
The bill to be submitted to the Legislature for review includes, among other changes, the creation of a market for trading of fixed income titles and improving business access to the market as a financing alternative.
Nacion.com states: "The project aims to further integrate the local market with international ones and allow cooperatives to issue securities."