When public resources are very limited, as it happens in Central American countries, association schemes between the State and the private sector become essential for developing the infrastructure that the region so badly needs.
A report from the Secretariat of Economic Integration (Sieca) states that "...In Central America, growing fiscal constraints faced by the countriespublic sectors make it increasingly difficult to achieve efforts for long-term infrastructure projects.In this context, Public-Private Partnerships (PPP) become relevant as an alternative measure of financing where private participation sector is facilitated in partnership with the government, with the aim of improving quality of services, reducing operating costs and capital, generating additional income, improving public management and minimizing budget spending.
83% of companies operating in a legal framework and who were surveyed by the Superior Council of Private Enterprise, obtained credit when they requested it to the financial system.
From a statement issued by the Superior Council of Private Enterprise in Nicaragua:
The Superior Council of Private Enterprise (COSEP), presents the Sustainable Business Survey Nicaragua 2015.
The Costa Rican company increased its sales by 2% compared to 2014, thanks to the dynamism of flavored alcoholic beverages in the US, foods in Guatemala, and beers, wines and spirits in Costa Rica.
Flavored alcoholic beverages, especially in America, and increased profitability in beer, wine and distilled drinks in Costa Rica and food in Guatemala, boosted Costa Rica Florida Ice & Farm's operating income in 2015, reaching $179 million, 13% more than in the previous fiscal year.
A complaint has been made that the General Directorate of Revenue owes at least $18 million in tax refunds to the private sector.
The slowness with which the tax authorities give refunds seems to be a widespread problem in the region. It is not only in El Salvador that entrepreneurs have to face this problem, but also in Nicaragua, where they say at least $18 million is owed to the private sector, explained Jose Adan Aguerri to Elnuevodiario.com.ni.
A draft bill, if approved, would give the State permission to access confidential information on private companies and create a state company that controls access to the Internet.
Representatives from the Superior Council of Private Enterprise (COSEP) argue that this draft law goes against the "principles of free enterprise," which if approved would become "an anti private investment law".
Growing institutional weakness in several countries of the isthmus brings to the forefront the responsibility of the business sector to keep the economy of this region moving forward.
EDITORIAL
Currently, the governments of several Central American countries are showing signs of weaknesses which - to different degrees- point to a sharp decline in institutional quality.
The private sector is questioning the proposal to amend the legislation to create an international financial trade zone to provide financial services "extraterritorially".
With this long-term project the aim is to modernize legislation "... to make it the same as it is in other countries in order to attract FDI in higher value-added processes," informed authorities at the Agency for Promotion of Investments and Exports of Nicaragua.
The government authorized the issuance of shares of this bank to incorporate private partners into the entity and turn it into a joint venture.
It is projected that the private sector will be able to acquire up to 60% of the shares and the state would get the rest. Until February 2015 the credit portfolio of state bank amounted to $1.195 billion, according to data from the Superintendency of Banks and Other Financial Institutions (Siboif).
Lack of control over the use of materials and job insecurity are two of the problems which would be resolved if the National Construction Council is created, suggests the private sector.
Informality in the construction sector is growing and with it "... security policies are becoming more flexible, they start to be neglected and then the potential for situations - such as increasing the minimum wage outside the scope of productivity and of consensus - becomes much larger," says the chairman of the Superior Council of Private Enterprise (COSEP), Joseph Adam Aguerri.
Employers say the country is losing competitiveness compared to the rest of the region as it has not seen downward adjustments in electricity rates.
Already there have been several talks with government on reducing energy prices, but still no response has been received from the requests of the Superior Council of Private Enterprise (COSEP).
Cosep's President Jose Adan Aguerri told Elnuevodiario.com.ni that "...
The private sector has rejected the methodology used by the government to establish the increase for this year and presented a proposal to make adjustments in the future.
From a statement issued by the Superior Council of Private Enterprise (COSEP):
The Superior Council of Private Enterprise (COSEP) in light of the unsuccessful negotiations in the National Minimum Wage Commission to reach a tripartite agreement and the political decision of the government through the Ministry of Labour (MITRAB), to approve the minimum wage unilaterally, which is in effect for all economic sectors of the country from March 1 this year, wishes to express the union position on this.
The private sector will be asking the government to implement a differentiated rate for electricity companies in order to avoid losing competitiveness against the rest of the region.
In light of the governments refusal to reduce electricity rates, the private sector has proposed the creation of a lower differentiated rate for users who consume more than 150 Kw / h per month, which are mostly companies.
With the reform of the Tax Coalition Act only international cooperation funds for projects agreed by the Executive will be exempt from taxation.
The project to amend the Law on Tax Coalition seeks to eliminate tax exemptions enjoyed by international cooperation funds, leaving tax exemptions in place only for "... those who are registered with the Government."
With the consent of the private sector, the government has announced that it will remove from the Tax Coalition Law the article which establishes an end to exemptions on December 31st this year.
The executive Power will this week present the law reform to the National Assembly, and it is expected that it will be approved before the end of the current legislative period.
On June 27, business leaders from the region will present their proposals to the presidents for improving and eliminating barriers to intraregional trade.
In the meeting with the presidents from the region scheduled for June 27 in the Dominican Republic, guilds that make up the Federation of Private Entities of Central America, Panama and the Dominican Republic (FEDEPRICAP), will describe once again the obstacles that currently limit the competitiveness of Central American companies.
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...