Weekly Report - 4 November 2003

COSTA RICA | Depositors insist on preferring dollars. The government's hopes of reducing the amount of dollar-denominated loans being granted is running up against the depositors' preference for the US dollar as a store of value. At the beginning of September, the amount held in dollar-denominated accounts by both state-owned and private banks reached US$2.8bn, virtually matching the volume held in colones. This leads the banks to maintain a similar proportion in lending, so as to avoid exchange risk.

GUATEMALA | Uproar over electoral shutdown. Business associations as well as opposition politicians are in an uproar over a full-speed amendment of the labour code which bans all productive activities during the six days leading up to general elections. The amendment was passed on the strength of the votes cast by the ruling Frente Republicano Guatemalteco (FRG). Its rationale: it will reduce abstentions and prevent businessmen from keeping their employees from voting.

PANAMA | Banking on 3% growth. When the books are closed this year the Panamanian economy will be seen to have grown by 3%, predicts deputy economy minister Domingo Latorraca. He says the last three quarters have shown `very clear signs of recovery' on most sectors of activity. Latorraca expects economic growth to continue at about the same rate over the coming two years.

DOMINICAN REPUBLIC | Selling off state's stake in electricity. President Hipólito Mejí­a has set up a special commission to review the legislation governing the electricity sector and the reform of state enterprises. 

His aim is to remove obstacles to the privatisation of at least 75% of all electricity companies, including Edenorte and Edesur. He wants to keep only the hydroelectric power plants in state hands.

JAMAICA | Tourism target in sight. With the numbers of stopovers up by 6.3% and of cruise visitors by 35%, the Jamaica Tourist Board reckons that it will achieve its target for this year of 2.4m visitors (1.3m stopovers plus 1.1m cruise visitors). Tourism director Paul Pennicook is even venturing that a target of 3m for 2004/05 is achievable, and that the figure could rise to 5m soon.