In contrast to international doctrine on access to public information, a ruling by the Costa Rican Supreme Court has accepted as valid a crude duplicitous technique used to block data management required to a public institution.
EDITORIAL
The Constitutional Chamber of Costa Ricahas rejected an appealpresented by journalists working for the weekly newspaper El Financiero, thereby validating the use of passwords to prevent computer analysis of a database containing information on wages paid at the State Bank of Costa Rica. SeeConstitutional Court limits access to free public database (In Spanish).
Months after its legislative approval, the Coffee Trust is to receive funds to support the sector affected by rust.
Last Friday the Comptroller General of the Republic ratified a contract for the Coffee Trust. For months several administrative obstacles had delayed approval of the trust which will be used to provide support to producers affected by the coffee rust fungus.
Congress is analyzing a 15% tax on offshore banks and 5.5% for banks domiciled in the country with presence abroad.
The Costa Rican Congress is considering three options for taxing offshore banking in a bill to reform the development banking system. "One proposal is for a tax of 5.5%, another is to exempt from taxes these type of banks and a third is a gradual tax", reported Nacion.com.
The new law eliminates the minimum legal reserve amount required by the Central Bank of Costa Rica (15%) for funds destined for home loans.
The application of the new law for middle class housing signed yesterday by the Costa Rican government is in the hands of financial institutions who provide loans for house purchases, which still must consider what returns they will obtain.
The selective consumption tax charged on hybrid cars has dropped from 15% to 10%.
Among the reasons explaining the low penetration of hybrid vehicles in the Costa Rican market is the amount of taxes that are charged.
"New hybrid-electric vehicles under tariff headings 8703 and 8704, with cylinders not exceeding 2,000 cubic centimeters, will be able to benefit from a 20% reduction in the selective consumption tax," states the new provision.
Credit histories of businesses and individuals will be more thoroughly reviewed, as well as their actual repayment capacity.
"We want entities to analyze peoples's debts with everyone, because they may have a loan here and there, and in the end owe millions," said Javier Cascante, chief of the General Superintendence of Financial Entities (Sugef).
Federico Carrillo, executive vice president and general manager of the International Bank of Costa Rica, has been dismissed by the Board.
Through a press release, the Bank reported that "the dismissal of Mr. Carrillo Zurcher is based on a loss of confidence by the Board, due to the failure to control some of Bicsa's financial operations, namely swaps" .
Interest rates fixed for 20 years being offered by banks are increasing the demand for mortgages.
Four banks are currently promoting mortgage loans with fixed interest rates.
Credit for housing rose by almost 6% from February 2010 to February 2011, an increase which could accelerate at the end of the year because of these programs.
Gabriela Mayorga in Elfinancierocr.com writes "The BCR has already managed to arrange loans (in less than two months), for a third of the total amount allocated to the fixed rate housing program, the bank said."
Institutional investors will have the opportunity to diversify portfolios so far composed of government paper.
Investing in public securities will give pension funds operators better returns for their clients, since these projects typically offer additional profits.
Regulations on public investment securities, for projects over $ 3,600 million, expect to assist in funding such projects.
The Superintendent of Financial Institutions of Costa Rica reported that the repossession of property for unpaid debts rose 77% from February 2008 to February 2009.
The increase in auction advertising for goods recovered by the banks is well-known, especially for real estate and cars whose owners cannot continue to make the monthly payments due to loss of income, unemployment and primarily because of the increase in interest rates.
After being capitalized, the three state banks - Bank of Costa Rica, The National Bank and Bancredito - reactivated all their lines of credit.
Nacion.com reports: "The Bank of Costa Rica has issued some $14 million (¢8 billion colones) since December 23.
At Bancredito, Arnoldo Trejos, Commercial sub manager, reported that they are currently formalizing the requests that were accumulated during the last few months of 2008.
The initiative proposed by president Oscar Arias seeks to strengthen the sector and shield it from the global crisis.
The president said that the National Bank, the Bank of Costa Rica and the Agricultural Bank of Cartago have enough liquidity and that this is just a preventative measure.