The high levels of unemployment and the poor growth of credit are factors that have worsened in the context of the economic crisis generated by the outbreak of covid-19, which has led to the deterioration of the credit record of customers.
Favorable financing conditions for the purchase of this type of vehicle and lower rates for freight services are part of the actions proposed by the government of Costa Rica to boost sales of electric vehicles.
The state-owned Banco Popular, Banco Nacional and Banco de Costa Rica are the financial entities that will offer attractive conditions in their credit lines for the purchase of electric transportation units.
In line with the revision from stable to negative for the outlook for sovereign debt, Fitch Ratings has also downgraded the outlook for the debt of state banks and two private banks.
From a statement issued by Fitch Ratings:
Fitch Ratings-Monterrey/San Salvador-24 January 2018: Fitch Ratings has affirmed the Issuer Default Ratings (IDRs) of various Costa Rican banks and revised the Rating Outlook to Negative from Stable.
Banco Popular and Banco Desarrollo Comunal in Costa Rica are putting out to tender security services for all their offices nationwide.
Government Purchase 2016LN-000018 Costa Rica-DCADM:
"Hiring of companies to provide security services in all of the offices of the Banco Popular and Banco Desarrollo Comunal (consumption according to demand).
While financial regulators want to increase the quality of banks' management with better qualified managers, a bill intends to reduce the demands of professionalism for a "popular" bank.
The intention of six members in reforming the Organic Law of the People's Bank (Banco Popular) and Community Development (BPCD) is to increase control of the union on the bank's management which is "...
Three state banks have approved a syndicated loan for the Hydroelectric Project Los Negros II, 40 MW, whose construction will start in April in Upala, Alajuela.
The three banks are Banco Nacional, Banco de Costa Rica and Banco Popular and Banco de Desarrollo Comunal, and the trust for the Hydroelectric Project Los Negros II, "... emerged as an initiative of the Public Service Company of Heredia (ESPH) as part of its strategy for energy sources.
Fitch Ratings has revised from "stable" to "negative" its perspective for international long-term ratings of the private bank BAC San José and the state banks Banco Nacional, Banco Popular, Banco Internacional and Banco de Costa Rica.
From a statement issued by Fitch Ratings:
Fitch Ratings has revised the Outlook for international long-term ratings of four Costa Rican banks and a Panamanian subsidiary from Stable to Negative, after having revised the Perspective for Costa Rica's sovereign rating from stable to negative :
Up to April 30, 2014 the number of cards in circulation amounted to 1,764,609, 2% more than at the end of January of the same year.
From a press release issued by the Ministry of Economy, Industry and Trade of Costa Rica:
According to data from the latest survey by the Directorate of Economic and Market Research of the Ministry of Economy, Industry and Commerce (MEIC), defaults decreased by 3%, corresponding to a delay of payment over 90 days, compared to the previous study.
The project known as the Integrated Banking Solution for Banco Popular de Costa Rica which began in 2008, and has had $4 million spent on it, has never worked and has now been declared obsolete.
An article by Crhoy reports that the Comptroller General of the Republic rejected an appeal by Banco Popular to be allowed to modify the original contracts signed with the U.S. firm Tememos USA Inc, to extend the time limit for its execution.
Banco Popular in Costa Rica plans to register bond issues in the financial markets of El Salvador, Panama and Nicaragua.
Pension funds in El Salvador and institutional investors in Nicaragua are the target for Banco Popular from Costa Rica, who plans to start three programs of issuances of debt worth $50 million.
Gerardo Abarca, financial manager of the company , told Elfinancierocr.com: "We want to internationalize the bank in terms of fundraising. We had a good experience in Panama, an already well consolidated market. We expect to leverage these new places a niche of investors with an appetite for terms of over one year. In Costa Rica , investments in accounts as well as on the National Stock Exchange, are still very short, with terms of six months to one year.
At the end of October 2013 the number of cards in circulation amounted to 1,723,306.
A press release from the Ministry of Economy, Industry and Trade of Costa Rica reads:
Costa Ricans owe in total $1,496 million in balances on credit cards, which is an increase of $21.5 million (1.46%) compared to the latest study by the Directorate of Economic and Market Research, according to the cut made up to October 31, 2013.
Credit card debt grew by 1.5% to a total of $1.482 billion, while the number of cards in circulation up to July 31, 2013 was 1,731,673.
A press release from the Ministry of Economy, Industry and Trade of Costa Rica reads:
The Ministry of Economy, Industry and Commerce (MEIC) through the Department of Economic and Market Research has conducted its latest study on debit and credit cards.
State Banks in Costa Rica have a portfolio of over 2,300 properties from the repossessions made because of mortgage defaults.
Nacion.com reports that "... the banks, Banco Nacional, Banco de Costa Rica, Banco Popular and Bancrédito had 2,336 properties in their possession, which represents a 35% increase compared to the same period in 2012." Of that total, Banco Nacional has the largest number of foreclosed properties with 60%.
Using standardized issuances, the Costa Rican entity intends to raise funds in the financial markets of Nicaragua, El Salvador and Mexico.
The idea "... is to raise funds by issuing securities on the stock exchanges of these countries with the aim being that investors can obtain the funds and channel them into placing loans here," noted an article in Prensalibrecr.com.
Private banks operate with margins between interest rates which are considerably lower than state banks.
An article in Elfinancierocr.com points out that "the five banks with the lowest margins in the country are private ones, as is clear from a study by EF based on data reported to the Superintendent of Financial Institutions (Sugef) for December, 2012 ".