After the UCCAEP in Costa Rica began to negotiate the lifting of the blockades with the self-proclaimed group Rescate Nacional, promoter of the protests, several business chambers distanced themselves from that decision and others have expressed their support.
Given the wave of protests and blockades that have been reported in the country, which arose after it was reported that to access a loan from the International Monetary Fund for $1.75 billion, the governmentplanned to tax financial transactions, raise the tax on the profits of companies and persons, and increase the tax on real estate. The Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) decided to negotiate the lifting of the blockades.
In Costa Rica, the new commercial reality requires restaurants to operate with a capacity of 50%; however, since they maintain the same level of fixed costs, the losses of this sector could exceed 20%.
For more than four months, when the first cases of covid-19 were reported in the country, consumers have been subjected to severe restrictions on mobility and restaurants were forced to operate in conditions unfavorable to their finances.
Some of the most notable effects caused by the spread of covid-19 is the cancellation of at least 8,000 hotel nights in Costa Rica, and the interruption by Iberia of its flights from Madrid to Guatemala and San Salvador.
Businessmen in the region agree that due to the virus that has been spreading from China, supply chains have been interrupted, which is combined with a drop in the transit of people, causing losses to the tourism sector.
A drop in the flow of tourists to the region, cancellation of reservations and the suspension of flights are part of the expected consequences of the spread of the virus worldwide.
According to the report prepared by the Central Bank of Costa Rica called "Commentary on the national economy for February 2020", derived from the outbreak of pneumonia caused by SARS-CoV-2 virus (coronavirus) is expected to report a negative impact on the influx of tourists to the country.
Because Financia Capital S.A. does not have the funds available to meet its obligations, it was revoked the authorization to make a public offering of fixed income securities.
The Superintendence of Banks and Other Financial Institutions (Siboif) informed that its authorization was revoked because "...
After nine days of strikes by public officials in Costa Rica, tour operators, hotels and restaurants in different parts of the country are reporting that reservations are being cancelled and sales are plummeting.
The strike being promoted by the country's public unions started on Monday, September 6, and has already caused millions of dollars worth of losses due to multiple road blocks and acts of sabotage in the fuel distribution chain, among other coercive measures.
The sector's union has estimated that for the 2017-2018 harvest 2.4 million hundredweight of beans will could have been produced, but due to climate effects, only 1.9 million hundredweight will be collected.
According to the Salvadoran Chamber of Small and Medium Agricultural Producers (Field), with the 500 thousand hundredweight of beans that will not be collected in the period 2017-2018, $25 million will be lost, as each hundredweight is valued at $50.
In Nicaragua, retail companies estimate that the damages caused to their facilities and inventory, together with the drop in consumption, have already generated losses of $70 million.
In the same vien as the situation reported by companies in the tourism sector days ago, the Chamber of Commerce and Services of Nicaragua (CCSN) has reported that due to the crisis affecting the country, entrepreneurs engaged in commercial activities have recorded losses of approximately $10 million in their facilities, $26 million in damage to their inventories and $35 million in damages to consumption.
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), "...
The losses reported by the National Power and Light Company (Compañía Nacional de Fuerza Luz) in 2015 amount to almost half of what it owes in bond issues.
The CNFL, is a subsidiary of the ICE Group, which is headed by Instituto Costarricense de Electricidad (ICE), also dedicated to production and distribution of electricity.
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.
The state run oil company in Costa Rica registered losses above $24 million during the first nine months of 2015, despite having the highest prices in the region.
In the first nine months of 2015 the Costa Rican Oil Refinery lost more than $24 million. The state run company, which has had a monopoly in refining and sale of fuels in Costa Rica for more than half a century, has payroll costs representing 56% of its total expenditure.
Suspension of the work on the hydroelectric project Barro Blanco caused by the blockades set up by locals preventing access to the site, has caused huge losses.
While waiting for the start of the repair works, the Honduran authorities are complaining about a lack of resources to cover operating expenses for November and December.
Authorities at the Cajon dam have request at least $94,000 from the Budget Committee of Congress to cover operating costs for the final months of 2014.
Juan Francisco Argeñal, the hydroelectric station's manager, told Laprensa.hn that "... The financial situation is that it is currently in deficit, as we lack the resources to, among other things, pay staff who work there. We met with chairman of the Budget Committee, Francisco Rivera, he is going to negotiated to see the possibility of this outstanding budget being assigned to us so that the dam can continue operating".
While the canal expansion is not finished the Maersk and Evergreen shipping lines are transporting goods in post Panamax ships through the Suez Canal.
The Panama Canal Authority (ACP) estimated that the temporary transfer of some of the services of Evergreen and Maersk Line shipping means they will lose out on $44 and $30 million respectively. To date, the expansion works are 75% complete and it is expected that the new locks will begin operating in January 2016.
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