A Fiscal Short Break for Costa RicaMonday, November 26, 2018 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. Costa Rica: Constitutional Approval for Shareholder RegisteryFriday, October 28, 2016 The Constitutional Court notes that the bill against tax fraud which aims to create a register of shareholders and preventive asset freezing, "contains no substantive defects". From a statement issued by the Constitutional Court: El Salvador: Less Options for Resolving Fiscal ProblemThursday, July 14, 2016 The inability to carry out the issuance of $900 million further limits the possibilities of solving the fiscal problem affecting the country. The Sanchez Ceren administration had intended to use the proceeds to refinance debt, pay pensions of officials and allocate funds to the Ministry of Education, according to the explanation given by the authorities at the Ministry of Finance. Less Uncertainty, Better OutlookTuesday, November 27, 2018 After Costa Rica's Constitutional Chamber prepared the path for tax reform in the Congress, the dollar's price against the local currency stopped rising, and positive reactions were reported in the risk outlook. Last November 23rd, Court IV issued its judgment, so the law project has a free way to move forward more quickly during the coming weeks in the Congress. Political and Economic Quagmire in El SalvadorWednesday, August 17, 2016 Lack of a "country agreement to escape the vicious circle of lack of growth, investment and employment, and excessive bureaucracy" continues to affect the business climate. From a report on the Legal and Institutional Situation by the Salvadoran Foundation for Economic and Social Development: Tax Reform: First StepTuesday, December 4, 2018 Alvarado administration celebrates the approval of the tax reform in Costa Rica by announcing a series of initiatives that include, among other things, a public employment reform Project. After a year of proceedings in Congress and after having been reviewed by a Constitutional Chamber, the country's Assembly finally approved file 20.580. By endorsing this project, the government intends to strengthen its public finances through changes made to the taxation system. Costa Rica: Fiscal Deficit at 1.7% of GDPWednesday, May 24, 2017 At the end of April, the Central Government's fiscal deficit stood at 1.7% of GDP, and total expenses grew mainly due to an increase in capital expenditure. From a statement issued by the Ministry of Finance: Honduras Discussing New Debt IssueFriday, June 13, 2014 The Honduran government could be looking to raise another $1 billion on the international market in 2015. Added to the $1 billion placed in the external market in 2013 there could be a further issue of the same amount, according to the Ministry of Finance, which is analyzing how they might be structure the placement and the financial costs to be assumed. Low Bond Prices Affects InvestorsTuesday, February 21, 2012 Debt portfolios formed with the Costa Rica State Bonds, are starting to be affected by the decline in bond prices. The low prices of the Costa Rican government bonds are causing dissatisfaction among investors, especially among those who have to value their assets at market prices. Costa Rica Expects to Issue More External DebtFriday, July 14, 2017 The government is preparing a bill for the Assembly to authorize a debt issue on the international market next year. The Ministry of Finance is considering raising money abroad in order to avoid pushing interest rates up in the local market. If the Legislative Assembly approves the bill, the government will turn to the international market to raise the 1.2 trillion colones that it needs to pay for domestic debt securities due next year. El Salvador: More Spending, More InefficiencyFriday, October 30, 2015 The industrial union says that public spending has increased significantly over the last two five-year periods, without having any positive impact on infrastructure. From a statement issued by the Salvadoran Association of Industries (ASI): Central America and the Rise in Dollar RatesWednesday, December 16, 2015 For the first time in nine years, the Federal Reserve has raised the benchmark interest rate, by 0.25%, starting off a process of a gradual adjustment which will make credit more expensive. After seven years of interest rates at historical lows, signs of recovery in the US economy have led the Federal Reserve to announce the first upward adjustment in the federal funds rate, the main reference rate for structuring interest rates in the United States and around the world. El Salvador: Moody's Downgrades Rating to B1Friday, August 12, 2016 The government's inability to stop the growth of debt in the context of low economic growth and a high fiscal deficit is the reason for the reduction in the rating. From a press release by Moodys: A Disappointing EconomyFriday, September 21, 2018 The deterioration of public finances and the inability of the Alvarado administration to end the blockades set up by trade unionists are again drawing the attention of rating agencies and the international market, who foresee a complicated economic future for Costa Rica. According to the risk rating agency Moody's, the demonstrations by public sector unions are increasingly complicating the path towards a much-needed reform of public finances, which would take its first steps with the approval of the bill that is being discussed in the Legislative Assembly. Costa Rica: Examples of How to be Like GreeceFriday, July 10, 2015 Information about salaries of officials at the state run telecoms company has been released, which include the more than $4000 a month paid to a chauffeur. EDITORIAL |
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