Four months after the operations of the two markets were integrated, five brokerage firms are already carrying out transactions and four other are waiting for their operating permit to be processed.
The attractiveness of the Panamanian stock market for both investors and companies raising money explains the great interest that the brokerage firms in El Salvador have shown in being part of the platform that allows them to operate remotely in the Panamanian market.
An agreement has been announced which will allow Salvadoran and Panamanian investors to buy securities on the stock exchange of the other country without them being registered in both markets.
The stock exchange authorities announced that the agreement implies that each recognizes the other's jurisdiction, allowing a "... Salvadoran investor to order their brokerage house to purchase a share in the Panamanian system directly and deposit the money system in custody in Panama . "
The microcredit portfolio in Latin America and the Caribbean is worth over $40 billion, is awarded by more than 1,000 institutions, and reaches more than 22 million customers.
From a statement issued by the Inter-American Development Bank (IDB):
A new report documents significant expansion of microcredit in Latin America and the Caribbean
GUAYAQUIL, Ecuador - Microcredit in Latin America and the Caribbean remains strong and continues its expansion of the last decade, experiencing an increase in their number of customers, a variety of institutions and a downward trend in interest rates according to new data released here today by the Multilateral Investment Fund (MIF), a member of the IDB Group.
Greater integration between the State and the business sector is essential to exploit the opportunities offered by the region's investment projects.
During the World Business Forum Latin America 2014, held in Guatemala, entrepreneurs from different sectors pointed to the need for increased connectivity and commercial traffic between South America and Central America, in order to take better advantage of investment opportunities in each of the countries, through the use of public-private partnerships.
A $100 million issue by Banco Popular Costa Rica is available for trading on the Stock Exchange in Panama.
The bonds were offered for sale in Costa Rica in 2011 and were recently approved by the Superintendent of the Panama Stock Exchange.
Being a certified issue, securities may be traded in Costa Rica and Panama.
"We are very pleased to achieve this foray into a market like Panama, a country that has become a gateway into the international financial world, said Gerardo Sanabria Porras, General Manager of Banco Popular," in an article in pa-digital.com.pa.
Paralyzed in political terms, the integration of Central American countries continues to advance in commercial terms.
While trade between the Central American countries continues to grow, as well as regional synergy between its companies, governments have been unable in recent years to marry the process of trade integration with the necessary institutional integration.
The amended regulations have now been published in the Official Gazette.
The new law regulating the securities market in Panama takes effect from 2 September, establishing how participants in the stock market must operate, and what regulations they must comply with.
The next step will be to turn the Comisión de Valores into a superintendency, which must be done within two months, as required by law.
Act 311 establishes a system of coordination and institutional cooperation between local financial control centers and creates a Superintendency of the Stock Market in the reform of Decree Law 1 of 1999 and Act 10 of 1993.
A statement by the National Assembly of Panama says that the financial system will be reordered and a Superintendency of the Stock Market created after the assembly passed the bill on its third reading.
The BCIE has released $67 million simultaneously onto stock markets in Costa Rica, Panama and El Salvador.
Reflecting what can be achieved in terms of volume and attracting international investment, the American Economic Integration Bank has issued bonds in three stock exchanges simultaneously.
Investors came from all three countries, with Costa Rica being the market where the most bonds were placed, $31.6 million, followed by El Salvador with $22 million, and Panama, where $14 million were sold.
Starting today and continuing for two days, the annual FIAB (Ibero-American Federation of Exchanges) conference is being held.
The event brings together 116 representatives from stock exchanges in Latin America, Portugal and Spain.
"Analysis of Central America's market integration, changes to regulations caused by the financial crisis, securitization, Latin American outlook, the general status of the European market and its outlook are some of the subjects that will be discussed," reports Elsalvador.com.
Annual growth in trade between Central American countries from 1960 to the close of 2008 averaged 11.7%, increasing from $30 million to $6.3 billion.
"Geography is destiny,” Napoleon would often say, and Central America is a clearly a case in point. As far as trade is concerned, the region’s countries are one, and in terms of business it is essential to take this into account.
The real, effective integration of Central America lies more in the hands of businesses than governments.
Deep into their own political agendas, which many times reflect only short term party interests, Central American governments have so far been unable to develop an integration process that is not only indispensable, but also unavoidable.
Integration is indispensable, as it is the only way to overcome underdevelopment barriers through a better use of human and material resources. It is also unavoidable, as Central American corporations are pushing beyond national borders, looking for lower costs through economies of scale and productive chaining from Guatemala to Panama.
Advantage must be taken of the opportunities offered by local markets, and of the importance of endorsing policies and regional negotiation standards.
Eduardo Rodríguez, Director General of PiPCA (Central American Integral Price Provider), in the blog "Integrated Securities Markets" in Capitales.com, analyzed the opportunity for access to local capital due to the restriction in international credit and its related benefits.
Regulation, surveillance, and supervision of the financial systems in Central America and the Dominican Republic.
International financial innovation has become one of the factors behind the current global financial crisis. According to estimates, almost 78% of global liquidity is concentrated in derivative instruments , which have come to represent at least 94% of the global GDP.
The Treaty on payment systems in Central America and the Dominican Republic.
1. Introduction: Central American Integration
From the start of their independent lives, Central American countries have sought to travel together on the road of development, remaining conscious of their common origin, objectives and destination. While the idea of political unity was abandoned long ago, the kindred and proximity of the people have been the driving force behind efforts towards regional integration, which mainly in the last few decades, have become institutionalized and has allowed for the development of joint projects in various areas: political, commercial, economic, financial, monetary, cultural, ecological, energy, customs and taxes, to name a few. This has also included the creation of legal system for Central America that integrates solid legal and judicial institutions at the regional level and supra-legal range.
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