In the context of the tense diplomatic and commercial relationship between the two world powers, Central American countries could have the opportunity to attract new investments, as it is estimated that some American companies would need to migrate their operations to the American continent.
As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S.
The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in.
On March 8, Moody's decided to raise its long-term issuer rating in foreign currency from Baa2 to Baa1, arguing that the outlook remains more favorable in the medium term.
Businessmen recommend to take more advantage of the characteristics of the economy, such as dollarization, the growing and constant flow of remittances and the strength of the local financial system.
The Salvadoran Foundation for Economic and Social Studies (Fusades) presented a study highlighting the 12 most important factors which El Salvador has that can be leveraged to reactivate investments.
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.
Seven bills designed to encourage investment are still pending in the legislative committees of finance, treasury, and economy.
Laprensagrafica.com reports that "The Legislative Assembly is about to close the first Legislative month of 2013 without having approved any of the reform initiatives and new laws proposed by the President, Mauricio Funes, to encourage investment.
The fall in consumption in Europe is forcing companies in the old continent to internationalize and find businesses in markets that have been hitherto unappreciated.
There is no longer such a thing as small markets, either in terms of size or purchasing power. And neither is the size of a company a limiting factor for, through the globalization of logistics, products to be sold worldwide, or to buy them from any country.
The Salvadoran government is promoting a series of measures that are part of the model called "New Cycle for Investment, Development and Employment" which seeks to give renewed impetus to private investment in the country.
A press release from the Presidency of the Republic of El Salvador reads:
The Economic Cabinet, led by the Technical Secretary of the Presidency, Alexander Segovia, revealed today in a presentation of this model the objectives, stages and actions with which the government is promoting economic takeoff and breaking the "vicious circle" which has impeded the country's development.
The International Services Act, which created the environment for the arrival of foreign banks, free zones and call centers, will be modernized.
The government of El Salvador is preparing amendments to the Law on International Services, which in its time allowed a multiplication of foreign investment in the financial, telecommunications and the maquila sector among others.
This was stated by The National Development Foundation during the forum “Analysis of the country’s economic situation and its perspectives”.
Forum participants are discussing the economic situation of the country, after one year of having president Mauricio Funes in charge.
“The international economic crisis, the possible impact of the European crisis on Latin America, and the ineffectual anti crisis plan launched by the government are some of the reasons behind the low confidence of investors”, reported Elsalvador.com.
In the next $800 million Eurobond issue, domestic investors will be able to participate in the primary market.
The public offering will be carried out in the Luxembourg Exchange, detailed Carlos Cácers, Treasury Minister.
"In previous offerings, 100% of the issue was immediately bought by investment banks and sold 24 to 48 hours later to individual investors, most of them Salvadorans, with 1%-2% surcharge", explained Cáceres to newspaper Elsalvador.com.