Guatemala: Leading Rate Begins 2020 at 2.75%

Friday, February 21, 2020

Arguing that the main economic indicators show a stable behavior, the Central Bank decided at the beginning of the year to maintain the level of the leading interest rate of the monetary policy at 2.75%.

From the Bank of Guatemala's statement:

Private External Debt Up 11% in 2019

Friday, February 21, 2020

As of December 2019, the external debt of the private sector amounted to Ch$1,817 million, 11% higher than that reported at the end of 2018.

From the Central Bank of Honduras report:

The balance of private external debt at the end of 2019 was US$1,816.6 million, increasing US$175.6 million compared to the one reported at the end of 2018; result of a net use of US$191.4 million and a favorable exchange variation that reduced the balance by US$15.8 million.

Salvadorans Buy Financial Services in Honduras

Wednesday, February 19, 2020

The Óptima financial group bought the shares of Financiera Solidaria S.A., a transaction that amounted to $50 million.

Directors of Óptima reported that Financiera Solidaria S.A. (Finsol) has been in the Honduran market for 21 years and that this acquisition is part of its strategy to regionalize the financial company in the micro and small business segments.

Endorsement to Final Beneficiary Registry

Friday, February 21, 2020

The Assembly of Panama approved in third debate the draft law that creates the private and unique system of registration of final beneficiaries of legal entities.

Chapter II of the document, on Registration of Resident Agents, stipulates that any lawyer or law firm providing professional services as a resident agent for one or more legal persons, constituted or registered in the country, must register and keep in force their registration with the Superintendency of Non-Financial Subjects, the Legislative Assembly informed.

Costa Rica: Basic Passive Rate Drops to 4.95%

Wednesday, February 19, 2020

The Basic Passive Rate dropped from 5.65% to 4.95%, while the Effective Dollar Rate also dropped, from 2.41% to 2.35%.

The Central Bank of Costa Rica published on the afternoon of Wednesday, February 19 that after registering a slight fall the previous week, the Basic Passive Rate fell again, in this case by 0.70% and will remain at 4.95% until next Wednesday, December 26.

Moody's Downgrades Nicaragua

Wednesday, February 19, 2020

Arguing that economic strength has weakened as a result of social tensions and is likely to leave a lasting negative impact, the rating agency reduced the country's credit risk rating from B2 to B3.

"The risk of reduced access to official external credit is creating financing challenges and restricting the authorities' ability to support economic activity," the agency's report explains.

Panama is Back on the European Union's Blacklist

Tuesday, February 18, 2020

Arguing that the country did not implement the reforms to which it had committed itself within the agreed time frame, the European Union decided to include it again in its list of non-cooperating territories in fiscal matters.

In January 2018, it was reported that the European Union's Economic and Financial Affairs Council, known as ECOFIN, had decided to exclude Panama from the list of non-cooperative countries in fiscal matters, in which the country was included on 5 December 2017.

IMF: Panamanian Economy to Recover by 2020

Thursday, February 20, 2020

For the international organization, after the economic slowdown in 2018-2019, the economy is expected to recover in 2020 and will continue to be among the most dynamic in Latin America.

In the medium term, growth is expected to stabilize at its potential annual rate of 5% and inflation is also expected to rise to 1% in 2020, reported the International Monetary Fund after its last visit to the country.

Guatemala in 2020: Debt Allocation Begins

Wednesday, February 19, 2020

The Ministry of Finance issued Treasury Bonds for an amount equivalent to $215 million, of which $155 million was in local currency and $60 million in foreign currency.

The amount awarded represents 8.42% of the total value for which the Global Representative Certificate for Fiscal Year 2020 was issued, including issuances for Small Investors, officials said.

Recycling: $1 Billion Investment Announced

Tuesday, February 18, 2020

In Guatemala, the government announced that in the next two years it plans to build a plastic waste recycling plant that would produce electricity, and the investment would be financed by donations.

The Ministry of Economy (Mineco) is focused on identifying within the metropolitan area which is the most suitable area for the installation of the plant and the plan is that it will start operating within two years.

Costa Rica: NO to the Removal of Bank Secrecy

Monday, February 17, 2020

Facing the proposal of the authorities to abolish the banking secrecy in the country, businessmen of the industrial sector are opposed, because they argue that there are already legal procedures in the country to do it through a judge.

 
At a press conference on February 11, Finance Minister Rodrigo Chaves defended the proposal to access sensitive information from taxpayers and said that by lifting banking secrecy they were seeking to tackle tax evasion.

Moody's Downgrades Costa Rica's Risk Rating

Monday, February 10, 2020

Arguing that the high fiscal deficit is still on an upward trend, the rating agency downgraded the long-term and senior unsecured government bond issuer's note from B1 to B2.

Fiscal deficits averaging more than 6% of GDP since 2015 have led to higher public debt/GDP than its 'B'-rated peers, the rating agency said.

From Moody's statement:

New York, February 10, 2020. Moody's Investors Service, ("Moody's") has today downgraded the Government of Costa Rica's long-term issuer and senior unsecured bond ratings to B2 from B1 and changed its rating outlook to stable from negative.

Monetary Policy Rate Begins 2020 at 4.5%

Tuesday, February 4, 2020

Arguing that for this year inflation is expected to remain around the central value of the target range, the Central Bank of the Dominican Republic decided to set the Monetary Policy Rate at 4.5%.

From the BCRD's press release:

Honduras: Monetary Policy Rate Falls to 5.25%

Thursday, February 6, 2020

In a context where economic activity continued to show moderate growth at the end of 2019, the Central Bank decided that as of February 10th the Monetary Policy Rate would be reduced from 5.5% to 5.25%.

From the Central Bank of Honduras press release:

Panama: Fitch Downgrades Risk Outlook

Friday, February 7, 2020

The rating agency maintained BBB's long-term issuer default rating, but decided to change the risk outlook from stable to negative, arguing that the debt burden will continue to increase in 2020.

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