The Costa Rican-North American Chamber of Commerce (AmCham), called on the Costa Rican Government to accept, immediately, the guidelines of the Organization for Economic Cooperation and Development (OECD) in matters of public contracting, which aim to guarantee open procedures for the competition, the no-discrimination, and the observance of adequate transparency norms, all these with the objectiv...

Costa Rica hopes to move closer to - and increase its trade with - Asia with the approval of a Free Trade Agreement (FTA) with South Korea encompassing 80 percent of the Central American country's products. "We hail with great enthusiasm the approval ... of the (South) Korea-Central America FTA. A great day for the foreign trade sector," said Foreign Trade Minister Dyala Jimenez on the social n...

The Costa Rican Investment Promotion Agency (CINDE), organized an event to analyze the new opportunities that Limón offers from a logistic perspective for multinational and national companies, thanks to the most recent investments in the area. All this in the framework of the inauguration of the new container terminal operated by APM Terminals. Jorge Sequeira, Managing Director of CINDE, explai...

The Costa Rica Tourism Board and the Costa Rican Investment Promotion Agency (CINDE) signed a new strategy for the search and promotion of foreign investment projects in the tourism sector that have to do with the respect to the authenticity, values and cultural tradition of national communities. “We will support self-projects of orange economy, those industries that support culture as an engin...

The Central American Bank for Economic Integration - CABEI and the Bank of Costa Rica, signed a transaction for 100 million dollars under the modality of outlay of a global credit line destined as work capital to promote productive sectors. The resources will be used by BCR to finance the operations of “mipymes”, small and mid-size companies of the manufacturing, agriculture and cooperative sec...

The company Standard Fruit Company in Costa Rica, a subsidiary of Dole, closed their work-center in the province of Limon, which included an operations department, terminal and workshop, affecting a total of 240 employees. The reason of the closure is due to the fact that the operations handled by this division are now offered by APM Terminals with a rate that is more convenient for the company...

On September 1st, 2017 law number 9428 named Ley de Impuesto a las Personas Jurídicas or Tax on Corporations took effect, imposing an annual tax on all corporations registered at National Registry based on the Code of Commerce such as SAs and LLCs plus all of those branches of foreigner corporations that obtained a corporate ID number for their Costa Rican divisions. This tax is due again for 2019...

The Costa Rican Government confirmed that the fiscal deficit for 2018 closed at 6% of the GNP, a reduction of 1.2% of the expected 7.2% of the GNP. “The results are the product of the unprecedented decisions of expense containment, the actions against fiscal evasion and efficiency promoted by this Administration as well as the approval of the Law for the Strengthening of Public Finances”, state...

Costa Rica took a big hit over the holidays with female tourists and visitors. Women were murdered in Costa Rica – brutally and viciously – with the most famous being the Venezuelan/American from Miami, Carla Stefaniak, who visited in December to celebrate her birthday. She was found partially buried behind the Airbnb she was visiting, and the hotel security guard stands accused of her murder. ...

After Moody’s recently downgraded Costa Rica’s financial ratings, now Standard & Poor’s followed suit and downgraded the country’ ratings of long- term debt in foreign and local currency which went from BB- to B+. This means the country went down one step as a debtor since a B rating is considered highly speculative, “An obligor rated B is more vulnerable that the obligors rated “BB”, but the ...

As explained in a previous article, December is time for all owners of motorcycles, automobiles, SUVs, Pick-ups and trucks in Costa Rica to pay the MARCHAMO, which is collected by INS (National Insurance Company). We mentioned that the largest amount to pay on the marchamo is a government tax created in 1987, when law #7088 took effect creating a property tax against all vehicles, airplanes and bo...

American credit rating agency Moody’s announced this December 5th they have “downgraded the Government of Costa Rica's long-term issuer and senior unsecured bond ratings to B1 from Ba2 and changed its rating outlook to negative, concluding the review for downgrade that was initiated on 18 October 2018”. Moody’s stated that the key drivers for the downgrade are: 1. The continued and projected...

A report by the Central Bank of Costa Rica (BCCR) shows that the Tourism Industry contributes a 6.3% to the country’s GDP. “To put into perspective the size of the tourism industry in the country, it can be compared to other economic activities. In this way, for example, the IT industry represented a 2.2% of the GDP, the production of electricity contributed a 2.1%, the manufacturing of medical...

Credit rating agency Fitch placed Costa Rica’s Issuer Default Ratings (IDR’s), which is basically an opinion on an issuer’s general capacity to fulfill its financial obligations, on rating watch negative (RWN), this gives the country anywhere from one to three months to resolve its public finances before lowering its already low rating. Costa Rica is currently rated as BB (elevated vulnerabilit...

The Costa Rican-American Chamber of Commerce (AmCham) celebrated the start of operations of the Moin Container Terminal (APM Terminals) since it considers it the first step to the reaffirmation of the efficiency of the concession model in the country and the economic reactivation of the province of Limon. “AmCham recognizes the seriousness and commitment of the concession company APM Terminals ...

The price of the US dollar in Costa Rica reached 600 colones per dollar on October 11, and this October 30 it closed at the highest price so far 616 colones per dollar in some banks. The currency exchange can be found between 613 colones to 616 depending on the banking institution. The Central Bank informed it will raise the reference price to 610 colones this Wednesday, October 31, which wi...

The Container Terminal in Moin, Limon, began operations this past week in a first stage, although officially it won’t be inaugurated until February 2019. The terminal expects to be servicing an average 10 vessels a week by the start of 2019, increasing gradually the number of services offered. “The start of operations of the Moin Container Terminal broadens the scene of our international com...

According to data by the Costa Rican Chamber of Commerce, the labor strike that began on September 10 and is still ongoing today affecting the education sector, caused economic losses to 76% of the businesses in Costa Rica. “The Costa Rican Chamber of Commerce considered since the beginning that this strike was unnecessary and even when protesting is a right, promoting chaos and paralyzing esse...

As of this coming Friday, the Moin Container Terminal in Limón will be ready to receive commercial boats as its first berth is ready to operate. The Moín megaport, is built over a 40 hectare artificial island,it will be equipped with six port cranes which are unique in the country and will allow Costa Rica to provide for the first time services to Post-Panamex vessels with capacity for 8,500 +...

American credit rating agency Moody’s announced it has "placed the Government of Costa Rica's BA2 long-term issuer ratings and the Ba2 senior unsecured bond ratings on review for downgrade. Back in 2017, Moody’s had already downgraded Costa Rica’s government bond rating from BA1 to BA2, maintaining the negative outlook of the rating and pointing as the key driver behind the downgrade “the conti...

According to the National Household Survey carried out by the National Institute of Census and Statistics (INEC), poverty in Costa Rica has gone up by 1.1% in comparison to 2017. "We are now seeing the consequences of not making decisions, poverty grows, unemployment grows, there's deceleration of the economy and a raise in the interest rates. This is why the approval of the fiscal plan is cru...

The price of the US dollar in Costa Rica has been fluctuating for the past few weeks and today if has reached the highest price of the year at 600 colones per dollar at some private and public banks. Some banks still have the price slightly under the 600 colones, BAC San Jose for example sells it at ₡599.00, Banco de Costa Rica and others such as Scotiabank has it at ₡602.00. The new preside...

The Legislative Assembly in Costa Rica approved this Friday in first debate the Law to Strengthen the Public Finances, better know as Fiscal Plan, with a total of 35 votes in favor (22 against). Among the 22 members of congress that voted against the plan were the 14 representatives of the National Restoration Party, 2 of the National Liberation Party, 1 of Frente Amplio, 3 of the National Inte...

In response to fake news circulating on social media regarding the “rationing” of fuel, the state refinery (RECOPE) clarified that the company has enough fuel supply of the main fuel products at each of their facilities to satisfy the demand. According to Recope, the distribution of products through the fuel pipeline has normalized 15 days ago and the pumping of Plus 91, Super, Diesel and aviat...

According to a press release sent by the Costa Rican Construction Chamber, the labor unions’ strike that has been going on for the last three weeks, have caused that five construction companies have had to let go close to 300 workers. The fact that there has been a shortage or raw material for the production of asphalt that is used in the works of roads in the country is leaving many workers wi...

The Ministry of Treasury and the Central Bank of Costa Rica resorted to treasury bills to finance expenses such as salaries, pensions, social programs and debts this as a result of the impossibility to place bonds. This is an emergency measure used to face the critical financial moment the country is facing and gain time while the fiscal reform is approved by the Legislative Assembly; this fina...

American credit rating agency Moody’s published  its analysis in relation to the negotiations of the Costa Rican Government with the labor unions regarding the fiscal plan and stated that “even though dialogue is positive, the current social unrest is negative for Costa Rica since it complicates fiscal consolidation efforts” Moody’s highlighted the importance of the approval of the fiscal plan ...

This question should have a very simple answer, but as the days go by and the “strike” continues, the answer changes depending on who you ask. In short, the labor unions (sindicatos) are protesting the fiscal plan, formally known as the Law to Strengthen Public Finances, which is currently being discussed at the Legislative Assembly and has undergone some changes since it was originally present...

The Minister of Tourism, Maria Amalia Revelo, urged to protect the image of Costa Rica and defend the tourism industry, which represents the main source of income for the country. “The Costa Rican tourism industry is formed in its majority by small and medium size companies that in addition to generating wealth, they distribute it to thousands of families. Just last year income generated by tou...

Photo Credit: La Nacion/Shirley Vásquez The Costa Rican National Tourism Chamber (CANATUR) calls on the establishment of dialogue, agreements and solutions to prevent any more negative effects over the productive sectors and the economy of the country, and, of course, the provision of basic services for citizens. According to information provided by Canatur, the general labor strike has alre...

After five days of labor strike in Costa Rica, many students have been affected with approximately 50% of schools being closed, thousands of patients have lost their long waited doctor’s appointment or worse, their surgery, others have been affected by to road blocks, and the list goes on. Through a press release The Costa Rican Chamber of Exporters (CADEXCO) informed that after four days of labor...

The Costa Rican Government assured through a press release that the 10% of the homes with most income will be paying for 60% of the resources that would be collected with the fiscal plan, Project 20580 for the Strengthening of Public Finances, which is currently in discussion in the Legislative Assembly. This is an estimate of the Ministry of Treasury after revising the new adjustments that ha...

The Costa Rican-North American Chamber of Commerce (AmCham) considers the call of labor unions an “irrational and irresponsible position”, considering the need that the country has on making decisions to recover the fiscal stability. “The Costa Rican-North American Chamber of Commerce condemns this action and asks the Government to take all the administrative and legal measures against people that...

The Government of Costa Rica announced a plan geared towards promotion an economic reactivation. Part of this plan includes simplifying processes eliminating the excess of procedures that many times are an obstacle for the private sector. “We are presenting these actions, many of them we are already executing, that will allow us to be more competitive, thinking of a development that reaches ...

Costa Rica has grown in the past decades in many areas, foreign investment being one of them, tourism being another; it has strong human development indicators which makes it one of the most stable countries in the region, it is also considered one of the happiest countries in the world. Yet, in addition to the complicated fiscal crisis it is currently facing, inequality is also one of the most...

The Costa Rica-North American Chamber of Commerce (AmCham) and the Chamber of Industries (CICR) analyzed the government’s proposals during the political campaign in areas that have a direct impact in the productive sector and published today their “Compliance Observatory”. The study monitors the compliance of the proposals presented during the political campaign and the institutional work expre...

Costa Rica ranked 46 among 86 countries in the Global Illicit Trade Environment Index, and is in seventh place in the America's. “The Global Illicit Trade Environment Index is commissioned by the Transnational Alliance to Combat Illicit Trade (TRACIT) and produced by The Economist Intelligence Unit (EIU)”, explains the Tracit.org website. “The Index evaluates 84 countries on their structural ca...

President Carlos Alvarado communicated yesterday the approval of a loan by the Central American Bank for Economic Integration (CABEI) for a total of $425 million for the Project: System of Water Supply for the Mid Basin of the Tempisque River and Coastal Communities (PAACUME) for the benefit of the counties of Nicoya, Santa Cruz and Carrillo. Alvarado also detailed that this is the most importa...

The salaries received by the judges of the Supreme Court of Justice in Costa Rica are among the highest in the world when compared to their counterparts in different countries of America and Europe. To be more concise, Costa Rican judges receive the fifth highest sum of approximately $16,000.00 USD monthly , only behind Mexico ($18,500.00), England ($20,000.00), USA ($21,000.00) and Switzerland...

Following the directives and decrees of the presidency regarding cost containment due to the fiscal crisis in Costa Rica, the Municipal Consulting and Development Institute (IFAM) will have savings estimated to be close to $293 thousand dollars for the remaining of this year. By implementing Directive 003-H, streamlining the use of public resources, the institution will save close to $228 thous...