españolPanama: Loan Portfolio Still RisingMonday, December 9, 2019 As of August 2019, the credit portfolio of the banks of the national system totaled $54,805 million, 2% more than what was reported in the same month of 2018, a rise that is explained by mortgage and personal loans. Total domestic credit increased by 2.1% compared to the same period in 2018. Guatemala: Banco de Credito SuspendedMonday, December 9, 2019 In order to preserve savings and the stability of the national banking system, the Monetary Board decided to suspend the operations of Banco de Credito, an entity that represents 0.2% of the total assets of the local banking system. The Superintendence of Banks will have to communicate to the general public the mechanism to be used to make operative the management of the deposits constituted in the Banco de Credito, informed the Central Bank. Financial System Still with Negative OutlookFriday, December 6, 2019 According to Fitch Ratings, banks in Nicaragua will continue to be pressured by the remaining effects of an economic contraction for the second consecutive year, a situation derived from the political crisis affecting the country. The operating environment of the Nicaraguan financial system continues to be negative, despite the agency's recognition that macroeconomic pressures have decreased significantly in recent months, as indicated by the recent review of the Sovereign to Stable Rating Outlook from Negative, reported Fitch. Nicaragua: Public Debt Increases to 3%Wednesday, December 4, 2019 As of August 2019, the balance of the country's public external debt reached $6,116 million, 3% higher than the amount reported at the close of 2018. Between December 2018 and August 2019, the ratio of debt to GDP also increased, from 45.4% to 49.3%, according to the most recent report by the Nicaraguan Foundation for Economic and Social Development (Funides). Legislative Endorsement for Anti-Money Laundering LawThursday, December 5, 2019 The National Assembly of Panama approved in third debate the bill that creates the Superintendence of Non-Financial Subjects, and now the proposal only awaits the approval of the Executive. The bill, which was sent by the Executive Branch to be analyzed in extraordinary sessions and which seeks to establish the exclusive competence to regulate and supervise non-financial regulated entities administratively with the aim of preventing money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, has already passed the procedure in the National Assembly. Progress on Anti-Money Laundering LawTuesday, December 3, 2019 The National Assembly of Panama approved in second debate the bill, by means of which it is intended to create the Superintendence of Non-Financial Subjects. This legislative project, sent by the Executive Branch to be analyzed in extraordinary sessions, seeks to establish the exclusive competence to regulate and supervise in the administrative way the non-financial obligated subjects with the intention of preventing money laundering, the financing of terrorism and the proliferation of weapons of mass destruction, informed the National Assembly. Banks Prefer to Save ResourcesTuesday, December 3, 2019 In the midst of the uncertainty generated by the political and economic crisis, banks in Nicaragua have opted to reserve their resources, a situation that is evident in the increase in the liquidity of the system. According to data from the Superintendencies of Banks and Other Financial Institutions, between March and October of this year, the liquidity of banks as a function of deposits went from 32% to 45%. Effective Rate in Dollars Increases to 2.43%Wednesday, December 4, 2019 In Costa Rica, the Effective Rate in Dollars reported a new increase, in this case from 2.38% to 2.43%, and for its part the Basic Passive Rate fell to 5.55%. The Central Bank of Costa Rica published on Wednesday afternoon December 4 that after recording an increase the previous week, the Basic Passive Rate reported a negative variation and will remain at 5.55% until next December 11. Credit Card Law: Progress on New ProposalWednesday, December 4, 2019 Last December 2, the new Credit Card Law proposal received a favorable opinion from the Economy Commission of the Guatemalan Congress, and now it should be discussed in the plenary session. This is the second attempt made in the country to regulate the credit card market, since on March 8, 2016 a law came into force, which was suspended weeks later, because the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC). At the beginning of 2019 the law was definitively declared unconstitutional by the CC. BAC Panama and Multibank to Compete SeparatelyMonday, December 2, 2019 Although Grupo Aval S.A. de Colombia owns both financial entities, the conglomerate has decided that the two banks will compete separately in the Panamanian market. Early last month it was reported that Grupo Aval de Colombia S.A., owner of BAC Credomatic, signed an agreement to acquire Multibank Financial Group of Panama, and according to the business group, the transaction process is expected to be completed in the second quarter of 2020. Guatemala: S&P Confirms Risk RatingThursday, December 5, 2019 Arguing that continuity in economic policies is expected after the change of administration in January 2020, Standard & Poor's maintained the country's credit risk rating at BB-. From S&P report: Honduras: Reform to the Free Zones LawWednesday, December 4, 2019 With the reform proposal to the Law of Free Zones presented to Congress, it is intended to reduce from 20 to 10 the requirements that must be met to approve a new free zone. After several months of working on the proposal to make changes to the law, the file was submitted to the legislative chamber and prepared by the Honduran Maquiladora Association (AHM), the Ministry of Finance, the Central Bank of Honduras and the Ministry of Economic Development (SDE). Panama: $200 Million to Digitize ProceduresFriday, December 6, 2019 The IDB will provide a $200 million loan to finance the digital transformation of processes with high demand, such as construction permits from the Municipality of Panama or commercial movements in the Colon Free Zone. The funds will also be used to encourage private investment, the protection of digital personal data and digital signatures. In addition, reforms will be included to promote follow-up to the National Industrial Competitiveness Program, the promotion of the National Quality System and the Regional Innovation Systems, informed the international organization. Public Works: Investment Could Be DisruptedMonday, December 2, 2019 With the deadline for Congress to approve the 2020 public budget expiring, the Guatemalan government must work with the 2019 budget, so some investments in public infrastructure could come to a halt in the first months of the year. Last November 30, the deadline for the Congress of the Republic to approve the draft budget of income and expenditures of the nation for 2020, which amounted to Q91.9 billion ($11.9 billion) and was not endorsed by most deputies. Guatemala: Leading Rate Remains at 2.75%Friday, November 29, 2019 Arguing that the economic activity and the execution of public expenditure report a behavior attached to the growth forecasts for 2019, the Central Bank decided to maintain again at 2.75% the level of the leading interest rate of the monetary policy. From the Banco de Guatemala statement: |
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Wednesday, December 11, 2019 - last update: 4:46 pm
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