An agreement was reached to extend for 90 days more the intervention of Banco Crédito Agrícola de Cartago, while discussion takes place of the plan that would allow its absorption by another banking entity.
The National Council of Supervision of the Financial System decided on May 22 to extend for three more months the intervention of Bancredito, whose status, according to the authorities, continues to be of "financial infeasibility".
In Costa Rica, the financial supervisor recommended the Congress to apply the state guarantee to Bancredito and merge it with another public banking entity.
Luis Carlos Delgado, president of the National Council of Supervision of the Financial System (Conassif), "... confirmed to Nacion.com that (last week) they approved, in a definitive manner, the final report on the intervention of Banco Crédito Agrícola de Cartago (Bancredito), which concludes that the entity is no longer financially viable."
Business management is the resource which determines the success or failure of a business, and the quality of that management determines, unfailingly, the market.
EDITORIAL
In Costa Ricaastate run bankand anagricultural cooperativehave once again been rescued from insolvency and the mismanagement of their managers, using, as it would not have been possible any other way, money belonging to taxpayers.
Nothing is more harmful to an economy than preventing the death of companies that have proven themselves to be inefficient or, as in the case of Bancrédito of Costa Rica, not essential or even needed.
EDITORIAL
Banco Crédito Agrícola de Cartago wants the State of Costa Rica to capitalize it in order to cure it of the financial deterioration that arose due to its mismanagement.
Using the format of a trust the National Concessions Council will carry out twelve minor works on Route 27.
The Ministry of Public Works and Transport (MOPT) explained that"...The 5,500 million colones ($10.2 million) will be allocated to the payment of expropriations of property required to provide access to properties that were interlocked with the construction of the road, the design and construction of the works ordered be paid by judicial instances, and for the design and construction of two fixed weighingstations on Route 27, which will be located near the Atenas toll booth. "
An announcement has been made for a funding line for micro, small and medium enterprises without collaterals such as mortgages, wage guarantees or financial analysis.
Using a methodology developed by Harvard University, which measures the skills, knowledge and abilities of the applicants, Costa Rica's Bancrédito bank will provide loans to small and medium enterprises.
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%.
The fall in interest rates has caused an increase in bond prices, encouraging holders to make profits.
During the first quarter of 2013, the stock market in Costa Rica grew by 18%, with the secondary debt market being the best performing, going from $1.34 billion in the first three months of 2012 to $3.459 billion in the same period of 2013.
Data from the National Stock Exchange (BNV), reveals that for the entire secondary market (including bonds and other instruments) there was also a rise of 39% (data dollarized).
Costa Rican Commercial banks closed 2012 with net income of $360 million, which is a 30% increase in nominal terms compared to 2011.
Those who reported the highest earnings were public banks, meanwhile private banks reported the highest growth last year in 2012, closing with $111 million, 32% higher than 2011. (This amount does not including the banks results from the banks Citibank, General, Bansol and Improsa).
The idea that the Central Bank of Costa Rica be a fund manager for the Development Bank has been rejected by its President Rodrigo Bolaños.
An article in Nacion.com notes that the strange idea originated in the office of the second vice president of Costa Rica, Luis Liberman, where it probably passed by the Economy Minister Mayi Antillon, who most likely presented it at the Development Bank Commission of the Legislature.
The intention would be to overcome the paralysis of $320 million from the Development Banking System of Costa Rica by giving over its management to the central bank.
The fund consists of 17% of current accounts of commercial banks in Costa Rica, known as the "bank toll" amounting to $320 million which is supposed to be used to grant loans to micro-entrepreneurs, within the Development Banking System.
The Costa Rican government is looking at the budgets of the robust state-owned banks as a possibility for satisfying its hunger for taxes.
A bill, over which discussion has already started in the Treasury Commission of the National Assembly, and which is called "Act for the Efficient Management of Public Finances" is a so-called alternative to the Chinchilla government’s failed fiscal plan.
Public banks in Costa Rica are competing with the state, paying almost 10% interest in order to raise funds in local currency.
The three state banks and the Banco Popular are offering an interest rate of 10%, while private banks are paying 9% on deposits on terms of between 5 and 7 months.
These periods are the most popular, which is why the government is trying to capture more in this segment, putting pressure on state banks who are also looking for resources in colons because they make the most loans in this currency, while the private banks are largely removed from that segment, said Luis Carlos Mora, chief financial officer of Banco Nacional.
The Bank of Costa Rica is the new administrator of the National Trust for Development, having secured the tender created for that purpose.
The Governing Board of the Banking System for Development (SBD) awarded by unanimous vote the administration of National Development Trust (FINADE), to the Banco de Costa Rica (BCR), following a tender.
Payments for credit card and services as well as foreign exchange lead user preferences.
Since the service began, growth has been constant; currently more than 130,000 daily operations are performed.
"According to Carlos Melegatti, deputy manager of the Central Bank of Costa Rica, transfers of funds to third parties will soon reach five million annually," reported Nacion.com.