Modifications to the Regulation on Infrastructure Financing and Securitization now allows for the creation of investment vehicles to finance public works projects.
These investment vehicles can be used for two purposes: to develop the work or to securitize its use or exploitation. With the amendment to the regulations, sustainable infrastructure works can be developed self sufficiently without government intervention.
A proposal by the General Superintendence of Securities would make conditions for securitization trusts more flexible in order to fund private and public infrastructure.
In order to make greater use of the model of funding works using public and private investment through securitization of assets with future cash flows, the General Superintendence of Securities (Sugeval) is preparing a reform to the regulation of Public Offering of Securities, which regulates how investment vehicles that are registered in the Stock Exchange should be structured .
The Superintendency of Securities projects there will be adjustments to regulations on investment funds, IPO, market intermediaries and infrastructure.
Elfinancierocr.com reports that "... the changes have goals such as modernizing the market, trying to make it more dynamic and giving appropriate treatment or investor protection."
"... Some of the adjustments include changes to the marketing of investment funds and the administration performed by management companies. The proposal opens the possibility for Sociedades Administradoras de Fondos de Inversión (Safis) to subcontract market analysis services, products and issuers. "
The Costa Rican Securities Superintendent is planning changes to provide more transparency and information to the market.
Those who develop investment products must "detail the identity of the company, its team, report on their knowledge of the subject, the results and experience they have and disclose any conflicts of interest. "
Elfinancierocr.com reports that "by March 2013, all firms providing investment banking services in the country will have to register, disclose who their executives are, their experience and potential conflicts of interest. This is another initiative of the chief of the General Superintendence of Securities (Sugeval), Carlos Arias, within his list of short term goals. "
Attempts are being made to register or certify the investment consultancies outside of the brokerage firms already regulated by the General Superintendency of Securities of Costa Rica.
An article in Elfinancierocr.com reports that "the new head of the Superintendent of Securities (Sugeval), Carlos Arias, in what has been called his plan for the short term, included the possibility of implementing a certification or registration process for investment advisers, portfolio managers and investment or structuring banks. "
In November 2010 announcements were made for works worth $760 million to be financed through securitizations which never materialized.
An article in Elfinancierocr.com reports that "In October 2010 a change in the regulation of public offering of securities came into force regulating investment instruments originating from securitization and trusts for public works developments."
Aggressive measures must be taken in marketing and attracting investment in order to exploit the possibilities opened by the DR-CAFTA and changes in the global market.
From Diario de Centro América:
The CAFTA-DR region has opportunities for growth
The clothing and textile sector of the country is ready to compete globally.
Opportunities in the region provided by the Free Trade Agreement between Central America, Dominican Republic and the U.S.
Businessmen say that clothing and textiles have regained the export levels of pre 2008-2009, when sales plummeted by 30%.
The president of the Garment and Textile Committee (Vestex), Carlos Arias, said that in 2008 and 2009 the industry saw sales drop by 30%. This meant that 15,000 people lost their jobs.
"There is a direct link between sales and jobs, and last year we recovered about 30% of the production affected by the crisis, so we believe that a similar recovery can be seen in terms of employment", said Arias to Siglo21. com.gt.
The Guatemalan clothing label manufacturer will invest $500.000 in machinery and equipment, and will hire an additional 50 to 80 employees.
This investment by 'Accesorios Textiles' (Actex), is geared to serve an agreement signed with textile company Denimatrix. For it, Actex will produce identification labels for Denimatrix's jean production.
"Sergio de la Torre, Actex president, explained that each jean needs 3-4 labels.
Denimatrix announced an alliance with "Accesorios Textiles" (Textile Accesories), the country's largest label producer.
'Accesorios Textiles' will supply labels for Denimatrix's jeans. The latter, formerly known as Koramsa, manufactures 120.000 jeans each week, for renowned brands such as Abercrombie & Fitch, Banana Republic, GAP, Rock & Republic and Buckle.
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