Arguing that there is a temporary need for liquidity in colons, on October 26 the Central Bank of Costa Rica decided to participate in the secondary market by buying two different series from the Ministry of Finance, with a maturity of 9 and 10 years.
On April 13, 2020, the Board of Directors of the Central Bank of Costa Rica (BCCR) authorized its Administration to participate in the secondary securities market of the Ministry of Finance and defined the conditions under which these transactions would be executed, with the objective of mitigating situations of systemic tension caused by temporary liquidity needs in colones, informed the monetary authority.
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.
The National Stock Exchange received a request for authorization of a new stock exchange post, which would be called Iberoamérica Capital, Puesto de Bolsa.
In a press release on 6 March, the National Stock Exchange explained that in the coming "... 10 working days, counting from the working day following this statement, any observation on the managers, shareholders, administrators or legal representatives that could evidence the non-fulfillment of the requirements of honorability established by the regulations can be received."
Some days after having initiated the administrative procedure against Aldesa Puesto de Bolsa, the judicial authorities of Costa Rica carried out several raids in the homes of the directors of the entity and its offices.
On May 24, through a relevant fact, the General Superintendence of Securities (Sugeval) explained that investigations would be made to determine whether or not the stock exchange carried out the necessary accounting records of accounts receivable payment operations for nine months.
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 proposal to increase the tax on interest on financial investments in Costa Rica could eventually make credit more expensive for both the private sector and the government.
In the view of the National Securities Exchange (BNV) it is worrisome that initiatives such as an increase in tax on income from financial investments are being discussed without knowing in detail and clearly the impact that something like this could have on the stock market and the country's financial activities.
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.
Establishment Labs Holdings, dedicated to the manufacture of breast implants, issued $66 million in shares on its first day of trading on the Nasdaq stock exchange, in the US.
Representatives of the company reported that through the procedure called "pricing", last Wednesday the company sold 3,175,277 shares to investorsat a unit price of $18 dollars.
The Costa Rican Stock Exchange is preparing a bond plan for companies that seek to finance renewable energy, agriculture, and waste management projects, among others.
The aim of the authorities at the National Securities Exchange (BNV), is to have the first issue of bonds of this type ready in the last quarter of 2018.The plan is to provide financing alternatives through the stock market for projects"... new or existing ones that qualify as green projects, that is to say, that contribute to mitigating the effects of climate change or adapting to them."
Between January and November 2017, the volume traded on the stock exchange was $43,153 million, 4% less than the amount traded in the same period in 2016.
According to figures from the National Securities Exchange (BNV), as of November of this year 78,836 operations were recorded for a total of $43.153 billion, 4% lower than the $44.911 billion transacted in the same period in 2016.
Since September 25, foreigners who acquire securities from the local stock market will have to pay 8% tax on the dividends generated.
The differences that had arisen regarding how much and in what form the tax on dividends generated from investments made by foreigners in securities on the local stock market should be collected, have been resolved, and the Ministry of Finance confirmed that the tax will be collected from September 25th.
The restaurant company Tsunami Global Group is preparing to raise funds through the Alternative Stock Market, part of the National Stock Exchange.
With the funds obtained through the Alternative Stock Market (Mercado Alternativo de Acciones or MAPA in Spanish), the restaurant group intends to open four new premises in 2018. MAPA is a private investment platform that allows small and medium-sized companies to obtain capital from investors privately, not as public issuers in the regulated stock market.
The concessionaire of route 27 plans to place up to $374 million in the Costa Rican stock market to repay outstanding balances on a bank loan.
A rating report by Fitch Ratings states that Globalvía, through the issuer Autopistas del Sol, plans to"... issue local notes for a total amount of up to USD374 million.The 2017-A-CR Series will be denominated in US dollars for up to USD104 million and for a term of 10 years, while the 2017-A-CR Series will be denominated in US dollars for up to USD270 million and for a term of 14 years. Both series will maintain a fixed interest rate."
The brokerage Scotia Valores, a subsidiary of Scotiabank, has announced its deregistration from the National Stock Exchange and its exit from the local stock market.
Scotia Valores, a subsidiary of Scotiabank, will stop operating as part of a strategic decision by the Canadian group in Costa Rica, where it will focus on developing its banking business further.
A 15% tax, charged by the Treasury on income from interest generated on foreign investments in securities in the local market, has been described as incorrect.
A ruling by the Attorney General of the Republic indicates the charge of 15% by the Treasury on interest earned by foreigners on their investments in securities in the local stock market is incorrect and it should be 8%, as is charged to local investors.