Mei 2008: Nieuwsflits Costa Rica
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
Costa Rica Congress approves opening telecommunication sector
Costa Rica's Congress has approved the opening of the Central American country's telecommunications sector to private investment in cellular phones and Internet services. The telecommunications bill passed by a vote of 35 to 14, ending a long battle over the measure, which allows private companies to buy concessions from the state-owned telephone company to operate cell phone and Internet lines and was part of the Central American Free Trade Agreement (CAFTA). Fixed telephone lines will remain in the hands of the state-owned Costa Rican Electricity Institute. Under the law, which will take effect once signed by Costa Rica's President Oscar Arias and published in the official gazette, concessions will be issued by a national telecommunications regulator created by the legislation.
Costa Rica Congress approves opening insurance sector
By a 29 to 14 vote, the Legislative Assembly, Costa Rica's Congress passed a bill to open up the insurance market which had been a monopoly of the National Insurance Institute (INS) since its creation in 1924. The bill is one of the original 13 pieces of legislation needed to bring Costa Rican law into accord with the Central American Free Trade Agreement (CAFTA). Of the CAFTA implementation bills, this one and another to break ICE’s telecommunications monopoly had been the most hotly contested. The new law sets up an insurance regulatory agency. Costa Rica’s Fire Department (Bomberos), a branch of INS for 84 years will be financed by 4% of insurance premiums sold in the country. INS still retains the sole source from which the government can buy insurance.
Cafe Britt is seeking new funds
Cafe Britt (based in Costa Rica), is increasing its international operations by opening new stores in various airports in Latin America and the Caribbean. The company currently operates 19 stores at different airports; Costa Rica (5 stores), Peru (5 stores), Chile (5 stores), Curacao (3 stores), Saint Thomas (1 store) besides distribution centres in Heredia (CR), Miami (US) and Mexico (MX). The group also owns a roasting and chocolate plant in Peru and a roasting plant and an organic coffee farm in Costa Rica. The company is looking for new funds (financing or share emission) to continue with its rapid expansion by opening 3 new stores at Miami's International Airport. The company's international sales grew from US $ 8 million in 2004 to US $ 25 million in 2007.
Costa Rica to change taxation for off-shore banks
In response to a dramatic increase in the presence of offshore banks in Costa Rica, the President of the Central Bank, Francisco Gutierrez, announced that a bill was sent to the Legislative Assembly to try to even the tax requirements paid by offshore banks in the country. Currently, offshore banks are exempt from paying a 15% tax on the money they earn from the interest on loans taken out by Costa Rica nationals. The current law controlling this requires that offshore banks pay a flat tax of $125,000, which is far lower than the price that local banks pay. The amount of funds invested in offshore banks in Costa Rica has increased by 65% over the past three years, and exceeded $2.4 billion at the end of last year. If the bill is passed, offshore banks would have to pay the 15% tax. Some of the offshore banks in Costa Rica that would be affected include: Scotiabank, Promérica, Banco Cuscatlán, HSBC, BCT and BAC San Jose.
Houston Airport System to administer Costa Rica international airport
The company that has been in charge of administration of the Juan Santamaria Airport since 2001, Alterra Partners, has decided to sell its contractual duties to the Houston Airport System (HAS). HAS, which is based in Texas, will work hand in hand with ADC management from Canada, and Andrade Gutiérrez Concesiones (AGC), from Brazil to complete the renovations that have been pending due to financial issues. Once the Consejo Tecnico de Aviacion Civil (The Board of Civil Aviation) and the Controlaria de la Republica (the government) have approved, HAS will either have to provide its own capital, or obtain a $48 million loan in order to finish the work.
CAF to lend $100 million to Costa Rica for electric projects
The Corporación Andina de Fomento (CAF) signed a loan agreement with the government of Costa Rica to provide the Central American country $100 million to be used to finance activities organized by the Costa Rican Electricity Institute (ICE).
Costa Rica, hit hard by drought
(Source: Prensa Latina)
The Ministry of Agriculture and Stockbreeding confirmed the death of 750 cows due to the lasting drought in Los Chiles (northern part of the country). Droughts have also caused a drop in banana exports (14 percent drop compared to the the first quarter in 2007) Furthermore, at the beginning of this month, MAG authorities reported that the country had lost 17 percent of its beans harvest. Beans are one of the most important basic food staples in Costa Rica.
