Europe restarts negotiations on the Free Trade Agreement, besides Honduras's situation

Taken from: www.nacion.com

The European Union (EU) is willing to begin once again the negotiations with Central America to close the Free Trade Agreement this year, despite the complications generated by the deep political crisis that Honduras is currently living.

The vicepresident of Spain, María Teresa Fernández de la Vega, confirmed yesterday in the house of the Costa Rican president, Oscar Arias, the European disposition to continue with the negotiating process, with the idea that Honduras can adhere to the negotiations once it overcomes it tumultuous situation.

The contacts among both regions will continue this month, with the purpose that Brussels formalizes in the middle of September the decision to continue with the rounds of negotiation.

Besides the complications originated by the Honduran conflict, Europeans, like Central Americans are waiting for the negotiations around the banana products in the World Organization of Commerce (OMC).

Bananas are one of the products that generates more differences between Central Americans and Europeans. Europeans are trying to protect the fruit that’s produced in the ex-colonies.

There is another clause that restricts the possibility to sign the treaty with countries that that aren’t governed by democratic states, as is the current case of Honduras.

The problem is that the EU has said since 2006, when the start of the negotiations were announced, that they won’t sign this Free Trade Agreement with part of Central America, only with the whole region.

This Free Trade Agreement is a treaty that includes political aspects, of cooperation and commercial, this is really important to Central America because of the possibilities to sell products in a market of 500 million inhabitants and of a high level of consumption.

Spain is interested in signing this treaty by next January, during a summit between the EU and Latin America that will be carried out while the Spaniards exercise the temporary presidency of the EU.

Bond prices of external Costa Rican debt keep on the rise

Taken from: www.nacion.com

The prices of the bonds of the external debt of Costa Rica have been on the rise, after the fall that was registered at the end of the year 2008.

For example, the price of the bond from the year 2020, which is the longest time limit, passed from 105 in December of the previous year to 120 at present, based on the negotiations carried out in the National Stock Market.

A 120 signifies that the bond was sold in the secondary market (where the values are negotiated for second or more times) in a 20% more than the original value. For example, if the bond was of $100, it was traded in the secondary market with a value of $120.

The recoveries of the last months are signs of economic improvement, according to the president of the Central Bank, Francisco de Paula Gutiérrez.

José Rafael Gutiérrez, manager of the National Stock Exchange, explained that the margin (spread) between the performances of the bonds of Costa Rican external debt and the Treasury notes of the U.S., considered by analysts to be the safest around, has diminished.

In the last three months, the spread of the 2020 bond descended 116 basis points (100 basis points correspond to a percentage point in the rates), according to information supplied by Gutiérrez, taken from the service UBS – Bloomberg.

Just last Friday the bond of external debt that expires in the year 2020, was quoted in the international market with 123,50%, with a spread of 355 basis points on the treasury notes, according to Gutiérrez.

As the investors trust more in the economy of a country they are willing to pay more by their bonds or to receive a smaller performance.

The increase in the price of the bonds and the reduction in the spread is also a tendency that other Latin-American countries live.

For example, in the last three months the spread of the bond of Colombia that expires in the year 2019 descended 97 basis points, the bond of El Salvador that expires in the year 2023 descended 302 basis points and that of Guatemala that expires in the year 2034 diminished 147 basis points.

CANATUR releases digital map of Costa Rica

Taken from: www.nacion.com

The National Camera of Tourism (CANATUR) has put at the disposal of the public and foreigner two digital maps: one of Costa Rica and another of the province of San José.

These digital maps offer information on the political division, the road network, the main tourist destinations and the location of many fundamental services. The users may see these tourist guides in the site:
www.costaricatourism.co.cr

In the part upper left hand corner of the page is located a noticeable one with the legend: "Map. Click here". Upon entering the site, the individual will find a guide to organize their visit to Costa Rica and, in the case of the nationals, a source of information for plans and detailed knowledge of such tourist destinations of interest exist.

For Gonzalo Vargas, president of Canatur, this is a product that accommodates to the profile of the current tourist, who surfs the web mostly to obtain information of the destinations they’re about to visit. The national map has the typical information of any map that indicates where the hospitals, waterfalls, airports, airfields, gas stations, and ports are found.

Besides, it offers approximate distances in kilometers and demonstrates the national highways and secondary roads. In turn, the San Jose map includes a phone numbers list, like emergency services and information on international calls. Likewise, there exists a graphic of the zones where the traffic restrictions are set.