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  • Costa Rica's Central Valley's Still Top Choice for Most
    are its remmants once a sleepy country area and now of rural charm its near perfect climate its unique blend of laid back sophistication and ongoing commercial development including the massive Mall Multiplaza Good restaurants nightlife and numerous opportunities for sports and recreation are added values Just west of Escazu lies Santa Ana currently the fastest growing community after Escazu Further west lies the increasingly popular Ciudad Colon According to Marilyn Henderson co owner of Carico Real Estate in San Jose although the two communities are growing there are still plenty of bargains to be found As Escazu becomes increasingly crowded people are beginning to shy away from buying property there which has caused real estate prices to level off after a couple of flat years Other popular areas northwest of San Jose include the affordable Heredia hills with homes at 50 000 and up and the upscale San Antonio de Belen comparable in price to Escazu Both are within easy access of shopping malls schools and quality services including a short drive to Juan Santamaria International Airport Prices for these areas can range anywhere from 30 to 200 per square meter Discounts can often be negotiated for purchases of larger parcels Land in Escazu generally begins at 100 per square meter Homes range from 150 000 to 300 000 To the east of the capital the climate is generally cooler but still quite agreeable On the eastern border of the Central Valley Cartago and Turrialba are peaceful and relaxing but generally not popular because of their distance from the capital and the fact that general supporting facilities are not exceptional The Orosi Valley is beautiful but also relatively far from the capital A decent house with land can be found there for 150 000 Houses in Cartago are less

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/020322.html (2015-06-03)
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  • Belen, Costa Rica
    be somewhat more complicated A foreign born retiree who wants to live in Costa Rica part time can obtain a 90 day visa and renew it by leaving the country for at least 72 hours then re entering For full time residency retirees must demonstrate monthly incomes of at least 600 and labor through a pile of paperwork For a modest fee the Association of Residents of Costa Rica helps newcomers navigate the red tape Americans feel at home just about anywhere in Costa Rica but Beverlin and his bride spent a year searching for the perfect setting for their life together before deciding on the Cariari neighborhood of Belen a 15 minute drive from both the international airport and the Hospital Mexico medical center the largest in the Costa Rican capital San Jose For 83 000 they bought a four bedroom 3 1 2 bath two garage house with a terrace and servants quarters surrounded by gardens that bloom year round in the region s springlike climate average temperature 72 degrees F Nearby is the Cariari Country Club an exclusive resort with an 18 hole golf course spa and swimming pool Further afield lie the wilds for which the country is famous more than a quarter of Costa Rica s territory which includes everything from cloud forests and tropical beaches to mountains and volcanic craters is protected A word of advice hire a competent English speaking attorney not always easy to find in this Spanish speaking land to handle any real estate purchase Property taxes in Costa Rica are lower than in the U S capital gains are tax free and the dollar s value against the local currency the colon has enjoyed a steady upward trajectory that keeps pace with the increase in the cost of living On

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/001203.html (2015-06-03)
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  • Costa Rica Investor Attitude Study
    increasingly litigious nature of Costa Rican society where firms and individuals know and often use the full range of legal recourse to address claims and pursue actions a process which can tend to slow down the normal course of doing business While U S firms expressed confidence in the court system to fairly resolve commercial disputes the time it takes to adjudicate such claims is a concern Costa Rica is developing its alternative dispute resolution ADR options and new legislation was enacted in early 1998 intended to facilitate procedures to resolve conflicts through arbitration and mediation The Costa Rican Chamber of Commerce now has an ADR center and the American Chamber of Commerce in Costa Rica AMCHAM is establishing an International Resolution of Disputes Panel through which the prestige of the AMCHAM may offer an attractive option for dispute settlement While property issues have been long standing legal concerns in Costa Rica none of the companies interviewed had land or title problems Although many rented space those investors who purchased land did not indicate any problems with the ownership process As long as caution is taken in researching the title and going through proper registration procedures companies maintained that foreign investors should not be discouraged from purchasing land In addition title insurance is now available which greatly reduces the risk of ownership Most outstanding property issues in Costa Rica have resulted from large amounts of land expropriated for national parks and biologic and indigenous reserves In addition land invasions by squatters have been problematic particularly in the southern Pacific Pavones area Approximately twenty five claims by U S citizens remain outstanding with many of the expropriation cases going back to the 1970s and 1980s The prior Figueres Administration made some effort to resolve expropriation cases including one sent to international arbitration and made improvements in the legal framework President Rodriguez appears committed to continue to resolve outstanding cases and reportedly will work with the Inter American Development Bank in making further legislative improvements U S investors reported that Costa Rica increasingly recognizes the importance of adequate protection of intellectual property rights IPR and some movement is underway to improve the IPR regime The country is committed under the World Trade Organization to bring legislation into conformity with the requirements of the Trade Related Aspects of Intellectual Property TRIPs agreement by January 2000 Current shortcomings include the short length of patent term for pharmaceutical products inadequate penalties for trademark violations and general enforcement difficulties A major IPR seminar the first of its kind recently took place which advanced the dialogue on IPR issues among key actors in government business and the media The government s announcement that it will establish a new special prosecutor post for IPR is viewed as demonstrating the Rodriguez Administration s commitment to improve IPR enforcement C Government Operations While U S firms recognize that dealing with government bureaucracy in Costa Rica can be slow companies generally perceive that procedures are transparent and fair considerably more open than in many other parts of Latin America Establishing a company is a fairly routine process except in those sectors still reserved to the State Getting various government approvals or permits can be time consuming e g building permits utility connections etc Government procurement awards tend to be stretched out because protests are often made by a competing company to the government comptroller s office Contraloria challenging a decision or protesting a technicality in a competitor s bid Companies noted the importance of these procedures in helping to keep the bidding transparent although encourage efforts to speed the review process The main incentive system for investors now is the tax exemptions for operating in an industrial free trade zone The other programs export credit certificates and temporary admission regime have been phased out U S firms interviewed that are based in free trade zones expressed strong endorsement for the system and relatively smooth process in being approved for the tax benefits and the improvements made in simplifying government reporting requirements In addition U S investors are strongly supportive of changes to the free trade zone regime that are currently making their way through the legislature The proposed changes include extending the period of income tax exemption for companies that make additional investment increased benefits for investments in less developed regions and provisions to allow some domestic sales Companies report improvements in the operations of Costa Rican customs although further streamlining of procedures would be welcomed Documentation is increasingly computerized which speeds up the clearance process Occasionally a shipment is delayed clearance but most companies still noted the system works better now than in years past Firms located in free trade zones have few difficulties with customs and cite the benefits of having inspectors on site According to U S investors the government investment agency PROCOMER has become more efficient since being reorganized in the last couple of years Companies noted the improved general support and assistance for investors as well as changes simplifying registration procedures and reporting requirements In addition the private non profit organization CINDE was highly praised by several of the interviewed companies for its efforts in promoting foreign investors to Costa Rica and for working with the government in support of issues of concern to business e g privatization intellectual property protection D Labor The Costa Rican labor force is considered a major attraction for U S investors The population is highly literate and well educated The government has long placed a high priority in investing in public education including the university system as well as technical and vocational training The country enjoys a significant number of engineers and other professionals In addition workers are considered very trainable and productive Costa Rica s main comparative advantage for attracting high tech investment is that the country can provide sufficient qualified professional and technical personnel and at costs well below developed countries and often below what are increasingly becoming competitor countries in Asia Although the recent surge in high tech investment has placed some strain on available labor resources there are still good opportunities for growth particularly with the expansion of educational programs to meet future needs In lower tech industries although Costa Rica s wage rates are higher than many regional competitors higher labor productivity and modern manufacturing techniques can often compensate for labor costs Unions only have a significant role for public sector workers The main form of labor organization in private companies is the Solidarity Association which employers support through a credit union and other assistance services U S investors seem very satisfied with the operation of the solidarity associations commenting that they tend to work with the company not against it The associations have not been confrontational or used to negotiate wages Some companies have a separate permanent council of employees serving as a mechanism to bring up complaints and problems which has generally functioned very well Several companies mentioned issues regarding the main labor code which dates back to the 1940s that should be addressed particularly to allow more flexibility over work schedules The labor code requires overtime pay time and a half after the statutory eight hour work day as well as for shifts which extend past 10 00 pm One investor for example considers it essential to maximize efficiency by keeping the plant open 24 hours using two 12 hour shifts four days on four days off In order to do this without paying overtime rates special authorization was needed by government decree Another investor which operates two shifts day and late afternoon evening ends the second shift at 10 00 pm so not to have to pay overtime Instead the extra few hours are made up on Saturday a sixth work day for those on the second shift at regular pay rates Companies would seem to be willing to a pay at a premium if need be to implement alternative work schedules but not at the required time and a half Several investors commented that improvements for workers could be made in the retirement system The Rodriquez Administration is currently reevaluating the social security pension system through one of the consensus groups In addition to the pension workers also receive severance pay of one month s salary for each year employed at a company up to eight years Investors support efforts to develop tax incentives or other mechanisms to encourage worker retirement savings For executives and managers various pay packages including stock options specialized pensions and other compensation items while at one time very limited are now becoming increasingly utilized in Costa Rica E Infrastructure All the U S investors interviewed clearly identified Costa Rica s physical infrastructure as the main challenge for the country as it continues to modernize the economy and tries to compete with more developed nations around the world Even in a Latin American context many other countries have made further gains in recent years in improving infrastructure The Rodriguez Administration recognizes the needs and has placed high priority in allocating available resources for public infrastructure projects but also in developing legislation and other mechanisms to enable private investment in infrastructure The best infrastructure services are provided by the state telecommunications and energy company ICE which has long been a source of pride by the general population However there is consensus by U S investors and increasingly by the overall business community that although ICE may have served the country well in the past greater private investment will be needed to modernize services Most U S investors are generally satisfied with existing telecommunications services although there can be a long delay to get a telephone line installed costs could be more competitive and cellular service is at times erratic The main concern though is if the country is going to be successful competing in the high tech world the investment and technology needed to keep telecommunications at the cutting edge can best be acquired through private participation On the energy side of ICE more has already been done in allowing private investment through arrangements whereby privately owned power plants can sell generated electricity back to ICE However limits on the amount of installed electrical capacity permitted in private plants as well as continued monopoly in the transmission and distribution of electric energy have kept costs relatively high Supply is generally reliable although occasional outages do occur Costa Rica s road network needs major upgrading In San Jose traffic congestion and poorly maintained roads make commuting and transport of goods difficult The roads out to both the Pacific and Atlantic coasts add extra time and expense in trucking goods to and from the ports One investor commented that company trucks are not sent out at night since it is harder to see the many potholes that could damage the trucks and merchandise In addition to facilitating commerce in Costa Rica improvement s in the country s road system would also contribute to future growth of tourism which has already become a major segment of the economy In early 1998 a new public concessions law was approved which enables private companies to construct and manage highways and bridges The first few of these B O T B O L Build Operate and Transfer Lease concessions are currently being bid which should at least start to make some improvements to the road network Costa Rica s airport and port facilities are also in need of significant upgrading Rapid growth of international passenger and cargo traffic has stretched the limits of the main airport Juan Santamaria This pressure is expected to accelerate particularly with the surge in exports of electronic products The government has recently solicited bids for a private operator to manage the airport for a 15 year term including an estimated investment of 175 million for infrastructure improvement Successful implementation of this concession contract should help alleviate congestion over the short term The government is also considering a longer term solution in part based on a study financed by the U S Trade and Development Agency to eventually build a new international airport for San Jose U S companies that have cargo shipped in and or out from the main ports Limon on the Caribbean coast and Caldera on the Pacific coast commented on the relatively high costs compared to ports in many other countries in Latin America Congestion at the ports is a problem due to inadequate facilities public labor unions able to cause frequent work stoppages and preference at Caldera for passenger cruise ships Some modernization work is underway at Limon although the contract for a new Swiss crane has been delayed nearly a year over insurance issues Improvements at Caldera have largely been postponed because of budget constraints F Other Crime Security Traditionally Costa Rica has been considered a very safe country Over the years there has been an increase in crime mostly non violent thefts and break ins U S companies operating in Costa Rica are taking more precautions to make adequate security arrangements However all the companies indicated that the security situation is manageable and should not deter investment in the country In fact the security environment is still considered a very positive factor in the country s investment climate Finance and Insurance Although Costa Rica does not have a well developed capital market some changes have been made in recent years to strengthen the banking and financial system Still virtually all the investments made in Costa Rica by the U S companies interviewed have been financed using the companies internal resources or by international financial institutions to take advantage of lower interest rates than available locally In some cases though U S investors have relied on the local banking system for short term working capital requirements Overall banking services in Costa Rica have improved over the last couple of years spurred by the introduction of private competition for checking and savings accounts formerly under state monopoly Insurance though is still under a state monopoly the National Insurance Institute INS U S investors commented on the relatively high costs for insurance in Costa Rica and the lengthy time to obtain coverage policies Past legislative attempts to open the insurance market to private competition have not been successful but there appears to be some momentum now that could lead to reform of this sector NAFTA CBI Enhancement The apparel assembly sector is an important component of the Costa Rican economy and represents a significant share of bilateral trade with the United States The sector has remained fairly stable over the last few years New apparel investment arguably has been diverted to Mexico to take advantage of tariff preferences into the United States under NAFTA Other Central American countries have attracted new investment primarily because of lower wage rates However Costa Rica has still been able to keep most of its existing apparel industry because of the high productivity of labor and efficiency of plant operations U S CBI Enhancement legislation that would provide NAFTA equivalent treatment for the apparel sector would be important to all the CBI apparel exporting countries In the case of Costa Rica such measures might not lead to significant expansion of the apparel sector but would help ensure the long term viability of this industry U S investors are strongly supportive of CBI enhancement measures The cost savings on U S duties combined with the strong productivity of the country would likely keep Costa Rica competitive in the very cost sensitive international apparel business V RECOMMENDATIONS The following recommendations are based on the suggestions of the U S companies interviewed with investments in Costa Rica Recommendations encompass areas where these companies believe that the Government of Costa Rica could improve the investment climate by adopting new policies adjusting business development priorities or implementing proposed reforms Infrastructure Repair urban roads in San Jose metropolitan area and rationalize traffic patterns Expedite plans for private companies to build and manage select inter city roads highways under concession arrangements Establish framework for competition in telecommunications particularly for cellular and value added services Increase share of permitted private electric energy generation Place greater priority on port modernization including further dredging and additional handling equipment for Caldera and completion of contract negotiations for a new crane at Limon Implement plans for the private management concession of San Jose s Juan Santa Maria Airport Seek private investor s to reopen the railway system particularly to transport agricultural commodities Legal Environment Continue progress in resolving outstanding expropriation cases Resume negotiations to conclude a Bilateral Investment Treaty BIT with the United States Implement required changes in intellectual property rights regime to conform to WTO TRIPs agreement by January 2000 Strengthen registration procedures for land title acquisition Government Operations Reduce time required to obtain government issued permits Speed review procedures for challenges to government procurement awards Continue streamlining customs operations by simplifying paperwork required for customs clearance and speeding clearance process Labor Codify regulations to facilitate company flexibility in establishing alternative work schedules Develop tax incentive programs to encourage worker retirement savings that supplement social security pensions and company separation payments Economic Climate Ease fiscal burden of servicing public debt through restructuring and or sale of state owned entities Other Establish regulatory framework to allow private insurance carriers VI CONCLUSION Costa Rica offers an attractive investment climate for U S companies The U S investors interviewed for this study in general have been very satisfied with their overall experience doing business in this country Companies are foremost attracted to the political and economic stability that Costa Rica is known for perhaps unique in Latin America In addition the highly educated and technically skilled labor force is increasingly gaining the attention of high tech investors particularly for electronic components software development and for making products with more advanced manufacturing techniques e g plastics medical supplies pharmaceuticals To a considerable extent Costa Rica no longer looks to regional countries as major competitors for new investment but views itself up against countries such as

    Original URL path: http://www.ticonet.co.cr/costa-rica/readings/9810.html (2015-06-03)
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  • Squatters Are One of Landowners' Biggest Headaches - But They Can Be Avoided
    hard to sell some landowners will actually hire squatters to stage an invasion and hope IDA slaps an expropriation order on them to get the state to eventually buy the land Foreigners most at risk are those who rush foolishly into land purchases and those who buy property as a second home leaving it vacant for some or most of the year a category into which many foreign owners fall In what he described as cultural blindness Wells said Many people come down to tropical paradise and rush into too good to be true deals doing things they wouldn t dream of doing in their own country U S attorney Timothy Woodruff owner of the real estate management company Land Assurance has this advice for buyers wanting to avoid squatter problems Before buying carry out a visual inspection of the property it s surprising how many people blindly enter a contract without even visiting the property first he said You should go and take a good look said Woodruff Talk to neighbors and try to find out something about the history of the place and what its current status is to ensure there are no claims over it or it doesn t have problems with squatters You should record the property on film so that once you ve bought it you can prove there wasn t anyone there before if you have any future conflict with squatters Often squatters will transplant grown fruit trees and vegetable plants on to the land to make it appear they have been farming there for longer than three months he said Once you ve bought and you hire a caretaker or watchman to look after the property in your absence you should get him to enter a written contract and keep up to date with his salary and Social Security payments added Woodruff Otherwise he can turn against you and become a squatter himself Finally said Woodruff an owner should inspect the property at least four times a year to catch any potential squatter invasion in time to file an eviction order Wells also advises putting fences and signs around the property and hiring an administrator to oversee any workmen living on it If you take the right steps there is no reason why you can t live here peacefully said Woodruff Seeing a niche in the Costa Rican market for a company that would take care of properties for foreign absentee landowners Woodruff set up Land Assurance last year Among other things the company carries out periodic patrols of customers properties taking photographs and videos with a record of the date and time The company also takes care of paying taxes and workers salaries Stressing that he doesn t offer eviction or vigilante service Woodruff also acts as mediator sometimes when squatter problems arise In cases of squatters with genuine needs he said the best approach is to try to establish a rapport with them and come to some sort of deal We

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/980306-a.html (2015-06-03)
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  • Interested in Beach Land? Know the Rules
    a survey to be carried out 2 Find out if the beach has been declared of interest for tourism by checking with the Concessions Department of the Costa Rican Tourism Institute ICT If no declaration exists you must apply for one If the beach is of interest for tourism which is the case with most of the country s beaches it needs a Regulatory Plan If not it needs only a Land Use Plan 3 Most beaches still lack a Regulatory Plan a zoning plan dividing the beach into separate land use areas residential recreational tourism commercial green area camping Without it a municipality can give permits only for construction of temporary structures such as a kiosk or a hut However municipal corruption and incompetence mean that much of the tourism development that has taken place in the Maritime Zone has been done with no regulatory plan Many buildings in the country s beach resorts risk being knocked down once regulatory plans have been carried out if their location does not coincide with land use indicated in the plan 4 The land to be leased must be evaluated by the Direct Taxation Agency to define the amount to be paid in land tax Concessions are given on a first come first served basis giving priority to those who possessed the land beforehand They cannot be issued to foreigners who have resided in Costa Rica for fewer than five years nor foreign based or owned companies Only companies with 50 percent or more Costa Rican capital can apply for a concession Many foreigners get around this by putting the concession in the name of a Costa Rican partner Concessions cannot be sold or transferred without prior approval from the relevant authorities the municipality the ICT or the Agricultural Development Institute IDA

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/980306.html (2015-06-03)
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  • RE/MAX International announces expansion into Central America
    San Juan RE MAX of the Caribbean Inc has begun to market RE MAX franchises to brokers throughout Central America The future plans include a District Service Center in San Jose Costa Rica The first office RE MAX Asfisa started by Marita Lopez is already in operation in Costa Rica RE MAX International Inc is a leading real estate organization with offices in the United States Canada the Caribbean Mexico Eastern and Western Europe and Southern Africa RE MAX plans to open an additional 15 to 20 offices in Central America in the next six to nine months RE MAX Caribbean is continuing its plan to revolutionize the real estate industry by expanding into Central America We will bring the same level of success and quality that RE MAX has instilled in all of its offices around the world to this untapped market said Murphy According to Murphy three RE MAX franchises are currently under negotiation Out of the seven countries in the Central American region we have already seen interest for offices in El Salvador Honduras and Panama RE MAX Caribbean Inc has 11 offices in operation in San Juan and other parts of Puerto Rico and 17 offices on the nearby islands ranging from Nassau Bahamas to Aruba By December 1995 we plan to have offices in all of the Caribbean Islands The RE MAX system works because we offer a high commission structure a powerful and effective marketing program and the freedom to be in business for yourself but not by yourself With this incentive and support we offer home sellers and buyers unsurpassed service and results said Murphy One of the largest real estate organizations RE MAX International has flourished with an entrepreneurial environment and high caliber sales force In 1994 RE MAX Sales Associates touted

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/950803.html (2015-06-03)
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  • Business Risks, Opportunities in Costa Rica: Don't Let Enchantment Cancel Common Sense
    and financial services rank among the resources most necessary for any business activity Yet most foreigners approach the task of security financial services with either blissful ignorance or paralytic trepidation Banks and financial services in Costa Rica suffer from a particularly bad reputation Concerns about security and complaints of inadequate services are commonplace Costa Rican financial institutions are generally perceived to be unstable Several years of severe financial crisis during the 1980s and subsequent public and private sector default with international financial obligations left the country with a poor international credit rating The failures of several financial institutions during the last decade followed by the recent collapse of Banco Anglo Costarricense one of the country s largest state owned banks have contributed to a perception of instability Admittedly financial institution security warrants concern and any investor would be foolish to transfer assets without prior analysis In spite of the horror stories however several Costa Rican financial institutions offer security that meets or exceeds international standards Many have well established correspondent relationships with major foreign banks The risk of loss with these institutions is probably no greater than with most North American or European banks Banking services are relatively underdeveloped in Costa Rica Long dominated by a state owned bank monopoly the country s banking system has been slow to develop The modern customer oriented banking services to which most foreigners are accustomed have only recently appeared in Costa Rica However adequate services are becoming increasingly available Changes in the country s banking laws during the last several years have enabled private banking including some foreign bank interests to gain a foothold which has resulted in increased competition and improved services A reasonable amount of investigation is necessary to secure the services of a safe and responsive financial institution Anyone seeking to do business in Costa Rica must evaluate alternatives and select the bank or financiera with which he or she is most comfortable Necessary homework can be as simple as assessing your requirements visiting several institutions and consulting with experienced individuals or organizations Professional consultants are also available to assist you Real estate purchases are among the most common types of business transactions with which foreigners become involved The Costa Rican property marketplace has long been booming and many foreigners have successfully conducted real estate transactions There have been all too many cases however in which unwary buyers have paid above market prices and or have assumed ownership of encumbered or restricted properties In appearance the Costa Rican real estate market is similar to those in North America and Europe However there are significant differences of which the buyer should be aware Although most real estate brokers are honest and capable the legal structures and other controls to which most foreigners are accustomed are considerably looser in Costa Rica and it is relatively simple to become victimized by unscrupulous or incompetent sellers A buyer must perform basic due diligence making certain that he or she is dealing with a reputable

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/950317-d.html (2015-06-03)
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  • What to Expect when Investing in Miniscule Costa Rica Market
    like the Central Valley It s obvious during the low season of May through October when some hotels are forced to cut their room rates in half In the field of passive investments Costa Rica has two stock exchanges the National Stock Market and the Electronic Stock Market Both feature high tech computers moving financial instruments however the owners are different and commissions vary among the brokers They offer a variety of instruments such as certificates of deposits or internal debt bonds or tax credit certificates see chart Page 26 The stock market is overwhelmingly geared towards the purchase of government issued instruments In the 1993 94 fiscal year the National Stock Exchange reported that 86 61 percent of its transactions were in the public sector That s because investors would rather put their funds into bonds that provide interest rates over 30 percent in colones with the only risk that the government goes belly up hardly likely or that inflation devaluation make it not worthwhile But the government to attract these funds keeps interest rates attractive Inflation and devaluation in Costa Rica often follow a predictable cycle high in the year preceding and following elections then dropping once the government gets its spending under control by the second year of its administration The economy is opening and now is being flooded with imports and Costa Rican companies find themselves needing to compete But they are generally unable to afford domestic loans which often top 40 percent interest rates As a result to raise capital more and more are offering stocks such as Atlas Electric the supermarkets Más X Menos and Periféricos the nation s preeminent newspaper La Nación and even an exotic venture in the Rainforest Aerial Tram Currently the Costa Rican National Securities Commission lists over 120 companies registered to publicly sell stocks Stock brokers say Costa Ricans are so accustomed to government bonds with guaranteed profits that they are bypassing stocks which don t have fixed earnings Tico investors might be making a mistake by not taking into account the growing value of companies stock say the brokers A big risk is that companies often feel pressure to declare profits competitive with government bonds Whether it s healthy or even possible for companies to sustain annual growth and profit levels over 30 percent should be a serious question for the investor Investors should not be impressed when a company claims it is registered The firm might be registered in the Public Registry but that s as easy as going to the grocery store to purchase corn flakes These are off the shelf companies To sell shares which means advertising to the general public the company must be registered with the National Securities Commission Comisión Nacional de Valores Companies that make a limited offer of shares to only a few investors do not have to register Registration is no guarantee of profits or solvency or honesty But it is a legal record of how many shares have been

    Original URL path: http://www.ticonet.co.cr/real-estate/readings/950317-c.html (2015-06-03)
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