Because of factors such as business closures and lack of opportunities, it is estimated that criminal activity costs Honduras and El Salvador 16% of GDP, and in the case of Guatemala, its losses could amount to 7% of its production.
In Central America, the human costs of crime remain one of the highest in the world. El Salvador, Guatemala, and Honduras—referred to as the Northern Triangle— account for about four-and-a-half percent of homicides worldwide despite only having about one-half-percent of the world's population.
After three soldiers were killed in Izabal, Guatemalan business sector asks the government to regain control of the territories where criminal groups dominate.
On several occasions, business chambers have denounced that organized crime groups operate in the area from the Polochic Valley to Izabal, thus affecting productive activity in the area.
The situation became clear after it was reported on September 3 that a patrol of the Guatemalan Army Marine Infantry was ambushed in the municipality of El Estor, department of Izabal. As a result, three soldiers were killed.
Projects are becoming more expensive due to the fact that they increasingly include more security measures and in areas such as La Libertad, Soyapango, Ilopango and Apopa, some lots and homes are even losing value.
The wave of violence and insecurity affecting El Salvador is also being felt in the real estate market, especially in areas with high crime rates, such as La Libertad, Soyapango, Ilopango and Apopa, where"... houses may remain unsold for months. Contrary to this, in areas such as Santa Tecla and Santa Elena, buildings are in higher demand and are increasing in value because of their location. "
Companies have to allocate up to 15% of expenses to security services, as a result of the growing violence in the country.
A company wishing to operate in Guatemala has to allocate between 8 to 15% of its expenses to security in order to keep operating. The figure was provided by Victor Guillen, manager of purchases, imports and exports at Dagas, and published by Elperiodico.com.gt, who revealed that his company earmarked Q250 thousand ($32,000) per month for the security of its plants, trucks and workers.
The Dutch Development Bank is making its exit from the country official and has suspended commitments and disbursements, including for a hydroelectric project promised for Agua Zarca.
"... Given the current situation, with ongoing violence, FMO decided to suspend all activities in Honduras, effective immediately. This means that we will not engage in new projects or commitments and that no disbursements will be made, including the Agua Zarca project."
Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.
The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.
The recent attacks disguised as "legal" occupations that have been reported in private companies undermine the country's image and economic growth.
The Coca-Cola bottling company in the Dominican Republic, Bepensa, is the latest company to report an attack which resulted in property damage and losses in production. This type of vandalism "... is making private companies uneasy via occupations and executions of eviction without legal protection."
President Sanchez Ceren has passed a Special Law Against Crime Extortion, which aims to improve the fight against the unfortunate practice which primarily affects the business sector.
From a statement issued by the presidency of El Salvador:
The president, Salvador Sanchez Ceren, has sanctioned Legislative Decree No. 953 containing the Special Law Against Crime Extortion, proposed by the government to streamline the prosecution of this crime.
The Legislature has passed a law authorizing the Attorney General to carry out investigations on its own initiative, without the need for a formal complaint.
From a statement issued by the Legislative Assembly of El Salvador:
The National Assembly unanimously passed the Special Law Against Crime Extortion, which will toughen criminal and procedural sanctions, as well as administrative measures for the prevention, investigation, and prosecution of the crime of extortion.
"Receiving a call from an unknown bully asking for a large sum of money in return for not carrying out his threats is one of the biggest fears of Guatemalan citizens."
From an article by Corinne Dedik in issue 169 of the magazine Mundo Comercial of the Chamber of Commerce of Guatemala:
Extortion: Guatemalans Greatest Concern
Nearly 50,000 complaints of extortion to the Public Ministry (MP) have been recorded in the last ten years, 8,413 of them in the last year alone. Receiving a call from an unknown bully demanding large sums of money in return for not carrying out his threats is one of the biggest fears of Guatemalan citizens.
The US Government has renewed its travel alert warning stating that the levels of violence and crime remain "critically high, but have declined in the past two years."
The Department of State continues to warn U.S. citizens that the level of crime and violence in Honduras remains critically high, although it has declined in the past two years. This Travel Warning supersedes the Travel Warning dated June 2014 and includes additional information on crime and security in Honduras, as well as updated contact information.
The State Department of the United States has renewed its travel alert warning that the levels of violence and crime are critically high.
From a statement issued by the State Department of the United States:
The Department of State continues to warn U.S. citizens that crime and violence levels in El Salvador remain critically high. This Travel Warning supersedes the Travel Warning dated April 25, 2014, and includes updated information on crime and security in El Salvador.
The U.S. Government has renewed its travel alert warning stating that the levels of violence and crime remain high.
The State Department of the United States said in the statement that "... this Travel Alert supersedes the one issued in December 2013 and includes additional information about the level of violence and crime in Honduras."
Generators have reported energy theft, kidnapping from substations, staff being held hostage and looting of equipment and facilities.
Calling on the authorities and the Public Ministry to implement measures to combat insecurity and act against the "anti-projects" groups who are opposing the operation of power plants in various parts of the country, representatives from the sector reported that in the renewable energy category alone, these conflicting groups are holding up 12 projects in Huehuetenango, Alta Verapaz and Zacapa, with a total generating capacity of 355 megawatts.
The U.S. Government has renewed its travel alert warning stating that the levels of violence and crime remains high.
From a statement issued by the U.S. Embassy in El Salvador:
The Department of State continues to warn U.S. citizens that crime and violence levels in El Salvador remain critically high. This Travel Warning supersedes the Travel Warning dated August 9, 2013, and includes updated information on crime and security in El Salvador.