Because of fiscal uncertainty, in the first months of 2018, banks operating in the country reduced by 16% the amount invested in public debt securities in the local market.
Against the backdrop of doubts about the future of public finances in Costa Rica, it was reported that from January to September, 14 local public and private banks invested $3.190 million in government bonds.
Following the Constitutional Chamber's judgment on the tax reform, the exchange rate in Costa Rica temporarily stopped rising, but it is expected to restart upward trend in the coming months.
According to figures from the Central Bank of Costa Rica (BCCR), from mid-August to the first week of November, the Colon depreciated rapidly. However, after Fourth Chamber prepared the tax reform in Congress a few days ago, the dollar's price against the local currency stopped rising.
The Costa Rican banking sector opposes such a measure, arguing that imposing an upper cap on interest rates on bank loans would cause informality in the credit market.
The 20.861 reform of the competition promotion and effective consumer defense, which aims to cap credit interest rates, is discussed with the country's Tax Affairs Commission.
At the end of September of this year, the gross portfolio of the country's commercial sector reached $1.703 million, which is 2.1% lower than that reported in the same month of 2017.
Central Bank of Nicaragua (BCN) reported that, at the end of September of this year, the country's gross banking portfolio reached $4,891 million, 0.3% less than that reported in the same month of 2017.
In the last year, the number of credit cards circulating in the country increased 6%, and it is estimated that every Salvadoran who has acquired some debt has on average two cards.
According to data from the Credit Card Observatory (OTC), between October 31st of last year and the same date in 2018, credit card subscriptions went up from 748,949 to 793,141, equivalent to a 5.9% increase.
Costa Rican fund manager Vista SFI was authorized to market shares of its Fondo de Inversión Inmobiliario Vista in the Guatemalan market.
From the statement of the Financial Group ACOBO:
• Negotiation of the Fondo de Inversión Inmobiliario Vista in the Guatemalan stock market will allow a wider coverage in the negotiation of securities through the Central American market.
Arguing that the institution was negligent in the process of intervention and sale of the bank, in Panama Balboa Bank shareholders filed a $74 million lawsuit against the Superintendence of Banks.
The legal appeal filed by the Balboa Bank shareholders and admitted by the Third Chamber of the Supreme Court of Justice, points out to the Superintendence of Banks of Panama (SBP) to cause presumptive damages because of the sale price fixing of the bank's shares.
On February 14th and 15th, representatives of banks, international financial institutions and risk rating agencies will meet in Panama City to discuss issues related to the sector.
The event called "International Banking Congress for Regulators & Bankers," will be organized by the Superintendence of Banks of Panama (SBP) and seeks to address issues such as Basel III, prevention of money laundering, de-risking, new risks facing the industry, financial innovation-Fintech, cybersecurity, among others.
The Basic Passive Rate decreased from 5.75% to 5.70%, while the Effective Rate in Dollars also decreased, from 2.35% to 2.31%.
The Central Bank of Costa Rica published on Wednesday afternoon November 21st that after registering a rise of 0.10% the previous week, the Basic Passive Rate fell by 0.05%, and will remain at 5.70% until next November 28th.
In Costa Rica, the balance of credit card debt increased 14.6% in the last year, measured as of July 2018, rising from $1.880 million in July 2017 to $2.155 million in the same month of this year.
The Ministry of Economy, Industry and Commerce (MEIC), reported that according to the latest study of the credit card market, compiled by the Directorate of Economic and Market Research, Costa Ricans increased their debt balance by ₡166 billion ($275 million) in one year, representing a 14.6% growth.
Fitch Ratings reported that the country is under observation and for now maintains the rating at BB, awaiting what happens with the fiscal reform and the payment of government debt at the end of the year.
Fitch Ratings, a U.S. risk rating agency, reported on November 15th that Costa Rica would be close to a sovereign rating downgrade because of the country's public finances situation.
On November 14th, Banpro Grupo Promerica issued $200 million in bonds on the international market for a six-year term under the 144A format.
The bank announced that the issuance was made by Promerica Financial Corporation (PFC), its main shareholder, and that the issue was structured by Bank of America Merrill Lynch and Credit Suisse.
After the fast depreciation that the Costa Rican currency suffered weeks ago against the Dollar, in the last seven days the exchange rate has fallen from ¢629 to ¢615 per dollar.
Between August 16th and November 6th, the exchange rate in the wholesale market Monex registered an increase of 11%, rising from ¢567.97 to ¢628.81. However, since November 7th the price of the U.S. dollar has reported a downward trend, behavior that was induced by the interventions of the Central Bank of Costa Rica.
The Central Bank of Costa Rica informed that on November 12th, it made auction Monetary Stabilization Bonds in Colones, for an amount equivalent to $8 million, at a gross interest rate of 9.51%.
From the statement of the Central Bank of Costa Rica:
Because of the adjustments made by the Central Bank to interest rates in recent days, financial institutions in Costa Rica will be forced to raise interest rates on savings in local currency.
Arguing that forecasts suggest that inflation in 2019 could be above the upper limit of the target range, on November 1st the Central Bank of Costa Rica (BCCR) decided to raise the monetary policy rate from 5% to 5.25%.
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
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