No indication of Costa Rica being affected by the crisis

By  reporters Patricia Leitón and Ismael Venegas reporters from la Nación

The president of Costa Rica’s Central bank, Francisco de Paula Gutierrez sees no economic indication that points to Costa Rica being affected by the financial  crisis that is hitting the world market.

Costa Rica is a country that is not an integral part of international stock markets and the local banks are healthy. The country also has access to these funds: The Latin American Reserve Fund (FLAR), The Andean Community Fund ((FLAR) and the International Monetary Fund (FMI). Furthermore, there is a mechanism called the Mercado Interbancario de Dinero whereby local banks can guarantee their liquidity by lending each other money.

Guitierrez goes on to pint out that the local market is no very leveraged like other markets.

We still need to wait and see how the Baby Boomers are going to respond to the election to know the real fallout in the  Costa Rica Real Estate market.

Robert Shannon 8 October 2008 Costa Rica Real Estate, Costa Rica Retirement No Comments

Costa Rica has a surplus of money making the economy stable

How is Costa Rica Being impacted by the financial storm in the States
By Christopher Howard

A lot has been written recently in Internet forums  and in local publications about how Costa Rica will be affected by the world economic crisis which began in the States. Most of what you read is pure speculation by unqualified people. To get the best possible investment advice listen to the Costa Rica Real Estate experts.

Felix Delgado a Costa Rican economist recently stated, “There have always been losses, but not this large. Some get scared while others take advantage and buy cheaply.” Costa Rica has a surplus of money at this time which makes the economy stable.

Furthermore, the country did not have investments in any of the large firms which went down in the United States. Also high risk sub-prime mortgages do not exist here.  So there is no speculation in that risky market. Felix Castro of the Economic and Financial Advisors (Cefsa) says, “People complain that the banks are not lending like before, well this is because they are protecting their liquidity by limiting their loans to only profitable borrowers and projects.”

Oxford Anallytica, an independent strategic-consulting firm drawing on a network of more than 1,000 scholar experts at Oxford and other leading universities and research institutions around the world, said in Forbes.com, “Latin America’s banking systems appear to be on a relatively strong footing to resist the crisis. As far as is known, they have not invested significantly in U.S. mortgage-backed securities, nor do domestic financial markets have the complex instruments that were at the root of crisis. Overseas credit represents a relatively low percentage of bank funding, and the main international banks operating in the region, such as Santander and HSBC, are generally considered sound.”

Finally, it seems as the economy in industrialized countries becomes unbearable, people with money realize that the stock market and
certainly the real estate market in their own countries no longer are safe investments. Smart investors look for new emerging markets to
invest their money.

What does all of this mean? Anyone thinking of living or retirement in Costa Rica can still do so. Also, knowledgeable real estate investors can still find value properties and bargains if they buy in right areas and at the right price.

 

 

Robert Shannon 8 October 2008 Living in Costa Rica No Comments