The Inter-American Investment Corporation will buy up to $8 million of preferred stock in "QBE del Istmo".
QBE del Istmo is a reinsurance company based in Panama, with operations in Central and South America.
IIC's investment will be used to strengthen QBE's capital, enabling it to enter new markets in mass insurance products, -specially dental insurance for those without access to such coverage-, as well as regional expansion in Brazil, Chile, Costa Rica, Colombia, Honduras, Guatemala, Panama and Peru.
The Inter-American Investment Corporation (IIC) approved an equity investment of up to US$8 million in preferred stock in QBE del Istmo.
QBE del Istmo Compañía de Reaseguros, Inc (QBE del Istmo) is a reinsurance company. QBE is headquartered in Panama and has a presence in Central and South America.
The IIC investment will enhance QBE del Istmo's capital and enable the company to launch new mass market insurance lines—especially dental insurance for those who do not have access to such coverage—and expand regionally in Brazil, Chile, Costa Rica, Colombia, Honduras, Guatemala, Panama, and Peru.
Despite a 44% drop in trading volume in October, the sector expects to finish 2009 with a 25% growth.
This was announced by Gerardo Argüello, who explained that they expect higher volume in the last two months of the year, because the Central Bank of Nicaragua will issue various securities.
Argüello added: "...by the end of 2009, trading volume in the National Stock Exchange will reach $564 million, $108 million more than in 2008", reported Laprensa.com.ni.
From abundance to scarcity: Challenges faced by Central American banks in an
environment of tight liquidity.
After having been hit hard by the US mortgage crisis in 2008, large US and international banks have considerably weakened, in some cases escaping from bankruptcy only thanks to strong government intervention. Such an event has eroded the public’s confidence in the financial system worldwide.
From abundance to scarcity: Challenges banks face in an environment of little liquidity.
After losses caused by the real estate crisis in the United States in 2008, big American banks and those from other developed countries have been greatly weakened and, in some cases, have only escaped bankruptcy thanks to help from their governments. This situation has contributed to the erosion of confidence in the financial markets at the global level.