The impact of the coronavirus crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
In Costa Rica, a law initiative under discussion seeks to set caps on interest rates on loans, a measure that could lead to a reduction in the offer of credit for debtors classified as higher risk.
As part of a bill being discussed in the Legislative Assembly, the heads of the Central Bank of Costa Rica (BCCR) and the General Superintendence of Financial Entities (Sugef) were asked to give their views on the content of the proposal.
Allowing the opening of branches of foreign banks in the country and creating a structure of consolidated supervision of the entire financial system is part of the reform proposed by the Alvarado administration in Costa Rica.
In March of this year, two bills were presented to the Legislative Assembly, one of them seeks that foreign banks can open branches in Costa Rica and the other includes several changes to the Securities Market Regulatory Law.
Once newcomer investors realize the potential earnings, they are often ready to plunge into currency pair deal without a second thought. Careless novices lose thousands of dollars within the first few days, get disappointed in trading and discourage everyone around from ever trying.
To avoid this unenviable fate, do not ignore the chance to make most of the demo account.
The Tala loan app provides an alternative way to get short-term loans, that doesn’t involve complex procedures that are in use by banks and other lending institutions.
In these tough economic times where banks have increased interest rates that make it harder to get unsecured loans, a simpler way to get a loan is heaven-sent. The Tala loan app provides an alternative way to get short-term loans, that doesn’t involve complex procedures that are in use by banks and other lending institutions. Here, you don’t need a guarantor, security, or a good credit rating. Besides, the loan is instant, unlike other institutions where you would have to wait a minimum of 30 days. If you need a loan from Tala, you have to download the app first. This Tala loan app download guide will help you to install the app on your device.
Guatemala and El Salvador are the Central American economies that have registered the lowest levels of economic growth, when this is associated with the size of their public sector.
Panama, Nicaragua, Honduras and Costa Rica are the countries that would be obtaining exceptional results in their economic growth from the average expenditure of the region during 2011 to 2018, which could be associated with the investment made in past periods, informed the Central American Institute of Fiscal Studies (Icefi).
The Ministry of Finance reported that the placement was made through an extraordinary auction of domestic debt securities in the local primary market.
Costa Rican authorities informed that the collection was made through fixed rate securities in dollars with expiration in 2024, 2026 and 2029, and was assigned to 15 different stock exchange positions.
After a long and tense wait, the Constitutional Chamber granted the approval for the Law to Strengthen Public Finances to be voted in Congress with a simple majority.
The Court's judgment prepares the way for the law to advance more quickly in the coming weeks in the Congress. Now legislators will be able to vote their approval in the second debate, ending a long period of uncertainty, which led to a significant depreciation of the Colon against the dollar, a rise in interest rates and a general concern about the economic future in the short term.
In Costa Rica, the private sector anticipates adverse effects on the export and tourism sector's competitiveness if the Ministry of Finance succeeds in consolidating its plan to issue $6 billion in bonds in the international market over the next six years.
The reaction of the country's export sector comes after the government announced this week that it will ask the Congress for authorization to issue bonds in international markets for at least $5 billion.
The Ministry of Finance reported that $200 million of the bonds placed in the domestic market were "in firm" and another $400 million placed to the best effort.
The Ministry of Finance reported that because of Direct Contracting No. CD-MH-CP-TN-001 -2018 called "Contract for issuance services and distribution of internal debt securities", on November 19th two companies were awarded with a firm issuance of $100 million each.
The decline in tax collection, the government's short-term commitments and the possibility of a reduction in the credit rating are factors that worsen Costa Rica's fiscal situation.
According to figures from the Finance Ministry, during the first nine months of this year the tax collection of the Costa Rican government had a slight increase of 1% over the same period last year.
Up to $372 million of the state pension scheme could be invested in public infrastructure projects in Costa Rica.
Funding public works using Costa Rica's national savings funds saw a new and positive development in matters relating to the management of resources in the economy. The Board of Directors of the Costa Rican Department of Social Security approved a policy that allows allocation of up to $375 million of the reserves from the regime for Disability, Old Age and Death (IVM by its initials in Spanish) to be invested in public infrastructure projects, reported Nacion.com.
Consumers money is still being used to fund losses by the state-owned internet service provider, which have exceeded $100 million in the last six years.
At the expense of consumers - via prices for energy and telecommunications- Costa Rica is still keeping running state enterprises whose inefficiency has been proven. This time, Nacion.com reported that the Costa Rican Electricity Institute (ICE) covered the losses of Radiographic Costarricense (RACSA) with lending and a capital injection to that subsidiary.
Iconi Holding and Intermarket are the companies that the Securities Regulator has warned not have support or supervision in the country.
The Superintendency of Securities (Sugeval) has updated the list of unsupervised and unregulated entities for which reports have been received of possible unauthorized securities offerings, which could even be fraudulent.
español
7255
