The impact of the coronavirus crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
Using a web platform with key information from all of the markets in the region and the Dominican Republic, Central American stock exchanges propose reviving the plan to create a truly integrated regional market.
Once again authorities at stock exchanges in Central American countries and the Dominican Republic have put back on the table the plan to integrate the stock markets in each each country into a single regional one.
The sale of Citibank operations in El Salvador to Honduras' Grupo Terra has been formalized, with the insurer SISA included in the transaction.
From a statement issued by the Stock Exchange of El Salvador:
It was reported that subject to regulatory approvals from the competent Salvadoran authorities, Inversiones Financieras Citibank, S.A. has sold to the company designated by the Terra Group, all of its shares in Citi Tarjetas de El Salvador, S.A. de C.V.and Banco Citibank de El Salvador, SA and that Citibank Overseas Investment Corporation and Citibank Investments, SA, sold the company designated by the Terra Group its minority stake in Cuscatlán Valores, SA de CV Casa de Corredores de Bolsa.
Analysis of the current state of the Panamanian capital market, including the confidence threatened by various financial setbacks, and the opportunities to make the much needed structural changes.
Martesfinanciero.com reviews three episodes which have shocked the Panamanian financial market in recent weeks: "These events have shaken the financial system and put market players on alert.
With an initial capital of $5 million a company called Confianza-SA-FGR has started operating and will focus on the management of funds for the issuance of guarantees for loans.
Confianza-SA-FGR's main objective is the management of funds for the issuance of guarantees to back loans mainly for small and medium enterprises in agricultural, vocational technical education, and social housing projects.
Lacking financing from international organizations, the Honduran government is generating attractive business as it turns to the securities industry for the money it needs.
According to Arturo Alvarado, former Minister of Finance, "the need for government resources is driving the securities industry and although there is a high cost for the state, is an option for getting fresh resources."
Wealth creation at the individual level is key to the development of a country, and investment in securities is an effective way to do it.
During the forum held at the Universidad Latina in Panama on the stock market and the Democratization of Capital, there were two notable examples of success, not only for the companies involved, but also from the benefit of having a stock market culture, essential for a country’s inhabitants:
The Honduran bank has made a public offer of corporate bonds worth $35 million.
Journalist for El Heraldo, Wendy Mejia interviewed Roque Rivera, president of the bank about the release of corporate bonds on the Central American Stock Exchange.
"-Why issue these bonds?
- Three years ago FICENSA bank issued corporate bonds for $20 million and it was the most successful operation in the market, so we have decided to make a new issuance for $35 million, which will be in both domestic and foreign currency. "
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