BUSINESS & ECONOMICS |
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| Monday, November 24, 2003 Online Edition 46 | ||
55 000 NEW JOBS IN AGRICULTURAL EXPORTS TO EUROPE Honduras and the European Union have drawn up a contract to produce and export 600 containers of cantaloupes (melons) and watermelons to Europe from the southern departments of Choluteca and El Paraiso. At least 40 thousand new jobs will be generated through the production and shipment of the fruit. The shrimp sector in Southern Honduras will also benefit. The first exports should be ready by the end of December and the second by the end of March, after which production in these areas will diversify, moving on to the harvest of small varieties of grapefruit. Vice Minister of Agriculture and Animal Husbandry, José Ordonez, said the contract is ready to be signed and the first shipments will be ready any time now. “It is dollars that enter the country and help us with our balance payments. It means that 500 more “manzanas” of land will be harvested, doubling the number of indirect jobs for truck drivers, box makers, and packers,” said the Vice Minister. Our market has expanded, which means almost Lps. 400 million more for our entire export basket, said Ordonez. “European clients also expect two million pounds of Honduran seafood,” he said. “The shrimp will be cultivated in seven thousand hectares in Southern Honduras, which will create more than 15 thousand new employments in the area. The importers will lend money to the producers so they can finance the harvest and exporting processes.”. The shrimp will go directly to Cadiz, Spain, from where it will be distributed to other European cities. - La Prensa. Banks earned Lps. 600 million Tegucigalpa-The President of the Honduran Association of Bank Institutes (AHIBA), Roque Rivera, said the national banking sector has reported profits of Lps 600 million for this year. This year’s profits are similar to those reported for the same period in 1998. However, Rivera explained, the figures can not be compared due to the high index of devaluation and inflation since 1998. According to analysts, the increase in profits is due to the introduction of charges for previously free services. The cost of some operations also increased between 100 and 500 percent. In the year 2000, Honduras had 22 operating banks, and was fourth on a list of functioning banks in Central American countries. Panama was first on this list with 54 banks, followed by Guatemala with 32, Costa Rica with 25, Honduras with 22, Nicaragua with 14 and finally El Salvador with 13. According to the IMF, strengthening the financial system is crucial for the growth of capital and for encouraging investment in the country. However, a lot of ground must still be covered in the area of banking supervision. - El Heraldo
HONDURAN AGRICULTURE BIDS TO EXPORT TO SALVADORAN MARKETS Vice Minister of Agriculture and Animal Husbandry, German Perez, said Honduras is looking towards El Salvador and other countries of the region, due to the implementation of the new bio-terrorism law, which goes into effect next year in the United States. The government official analyzed the agricultural export strategy the country will use next year once the new law comes into effect. They also analyzed plummeting coffee and banana prices and the replacement of imports to the north American markets. Honduras registered a one half point less on its Gross National Product (GNP) in 2001, but it grew 4.8% in 2002, with this trend continuing in 2003. Agro businessmen and government officers believe that increased family remuneration from Salvadoran immigrants in the United States make our neighboring country an attractive destination for Honduran producers, because their buying capacity has risen. The Central American Bank for Economic Integration said exports to El Salvador will increase this year by 7%, with traditional exports growing by 17% , nontraditional by 7%, and goods from the maquila (factories) by 6%. - La Prensa |
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| Monday, November 17, 2003 Online Edition 45 | ||
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By Paola Uberti Next week will mark the end of a seven-year monopoly in the mobile phone market and the beginning of a new telecommunications era for Honduras. The new telephone company, Megatel, will start operating in the country six months after its successful bid for the sale of the Personal Communication System (PCS) band. In a public bidding held April 25, the National Commissions for Telecommunications (Conatel) sold the 25-year licence for US$ 7.1 million to Megatel. Megatel will enter into local market competion with Celtel. To date, Celtel has been the sole provider of mobile phone service to more than 250,000 Hondurans. The arrival of Megatel also signifies the introduction of new third-generation technology which allows high-speed data transmission. The Global System for Mobile Phone Communication technology (GSM) is used by more than 850 million users worldwide and represents 73 percent of the global mobile phone market. According to Ivan Pastor, Megatel’s Operations Manager, the speed of communications and the quality of network coverage will improve national productivity as well as provide customers with better choice. “We are going to see drastic changes in the telecommunication industry in Honduras,” he said. Megatel says coverage will initially support a network of more than 300,000 potential users. Between the start of operations and the end of 2004, over 200 network transmitters will be installed throughout the country. This will provide coverage to previously excluded areas such as border municipalities and the Bay Islands. The coverage of remote rural areas and disadvantaged urban communities was a stipulated clause in the license agreement with Conatel. The contract also required Megatel to invest US$ 60 million into operations within the first two years. According to Pastor, Megatel has already invested US$ 50 million and created over 300 new jobs in this sector. The contract between Megatel and Conatel was initially met with concerns from various consumer groups and The National Association of Industrialists (ANDI). They feared the presence of only Celtel and Megatel in the market could lead to both companies agreeing to price fixing. This strategy would lead to an increase in profits and exploitation of consumers. “Those fears are unfounded,” said Pastor. “If that was the case, Celtel would not have lowered its prices the way they have. We are planning a very aggressive campaign. We will try and take away from Celtel as many customers as we can.” Celtel did not return several calls and could not otherwise be reached for comment. Megatel says it will offer a variety of services that have not previously been available to Honduran customers. Megatel calls to the United States will now match current land-line rates. Making calls to the rest of the world will become 12 percent cheaper than using a land-line. Customers will not pay for international calls they receive. Also it will now be possible to call abroad using a pre-paid card. Tourists visiting the country will also benefit from the new services, according to Pastor. They will be able to use Megatel services with a passport and a small deposit. With seven stores and 500 distributors, Megatel is aiming at further developing its customer service. The company plans to create an extensive network of distributors, enabling customers to purchase pre-paid cards from gas stations and stores across the country. Megatel telephones will be able to cross network calls with Celtel cell phones and Hondutel land-lines. Prices for their GSM cell phones range from US$ 47,50 for a basic model to US$ 605,00 for a state-of-the-art handset. Depending on the model, GSM technology also offers internet connection, e-mail, instant messaging and the option of taking and sending pictures to other GSM cell phones. Pre-paid cards will be available in credit denominations from Lps. 50 to Lps. 500. A peak time call will cost US$ 0.32 per minute. “By 2005,” said Pastor, “We hope to have around 200,000 customers and a range of services that will set us apart from our competitors. We are sure that we will be the best option for our customers.”
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Inter-American bank puts US$ 138 thousand into airport security Government authorities will officially reveal their airport security plan toward the end of this month, in accordance with guidelines given by the International Civil Aeronautics Organization (OACI). The Inter-American Development Bank gave Honduras US$ 138,000, funds destined to investigate the situation in the airports and formulate proposals, which is the responsibility of Rafael Escobar, expert in the field. Part of the resources are invested in the capacitation of personnel from the Civil Aeronautical General Management (DGAC). People familiar with the issue assure that with the restructuring of air businesses and the capacitation of technicians. By May and June next year the four commercial airports in the country will be categorized and certified. Honduran airport security must be worked on not only to meet OACI requirements, but also to comply with a petition imposed by the U.S., which will permit air exchange on its territory only if higher standards of security in national airports is achieved. C.A. analyses the challenges to overcome in order to participate in CAFTA Latin American experts will meet in Tegucigalpa to talk about issues of commerce and development, with the aim of creating a basis to work together to meet the challenge Central America faces in the regional and world economy. The idea is that countries make the transformations needed to make the most of international economic openings like the Free Trade Treaty with the U.S. (CAFTA), the Area of Free Trade in the Americas (ALCA) and the Doha Round, a series of commercial negotiations carried out by the Organization of World Commerce (OMC). For Rebeca Grynspan, director of the Economic Commission of CEPAL-Mexico, there are three main components in preparation: negotiate in the best way possible for all, create competitive conditions, and ultimately, keep pushing to increase returns. “The opportunities created by commercial agreements are not automatic, they depend on what people do to prepare, investment in infrastructure and the existence of adequate and stable laws to appease private investors,” she said. Maquila Report Makes Things Straight German Leitzelar, Minister of Labor, said that the accusations of work exploitation issued against the factory that made clothes for Sean “P. Diddy” Combs are false. He said the Ministry of Labor has concluded its investigation and there is no exploitation. Rather, normal labor problems between workers and employees from the Maquila have been magnified. Worker Lydda Eli Gonzales publicly denounced the factory a few weeks ago in New York, USA. She said that while at work in “SETISA” South East Textiles, she was mistreated and abused. Gonzales was taken to the United States with the help of the head of the National Labor Committee, presided by Charles Kernaghan, and the Honduran Confederation of Workers, CUTH. She claimed the managers of the factory insulted the workers, denied them extra hour wages, fired them when they got pregnant, and blocked their efforts to form unions. Leitzelar headed the Ministry of Lobor’s week long investigation of the accusations against SETISA, located in the city of Choloma, property of American Steve Hawking. The Minister of Labor will continue to perform inspections upon petition of the industrials themselves. Jesus Canahuati, president of the Honduran Maquila Association, explained that the report clearly contained malice on the part of the accusers. There is no exploitation and this demonstrates a clear intention of damaging Honduras’ image internationally, he said. He added that he maquiladores will take measures so that foreign union activists do not continue to use Honduran employees in campaigns to ruin the reputation of the Honduran Maquila Industry. La Prensa.
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| Monday, November 10, 2003 Online Edition 44 | ||
COHEP survey reveals government spending exceeds income by Lps. 6, 000 million San Pedro Sula - The government failed to properly organize public spending and excessive consumption over the last few years, said a study by businessmen. Spending has exceeded income by nearly Lps. 6,000 million (US$ 342 million), according to the survey by the Honduran Council of Private Enterprise (COHEP). The survey revealed that from 1999 to 2002, total government spending increased from Lps. 19,940 million (US$ 1,139 million) to Lps. 26,751 million (US$ 1,529 million). “The state has had important revenue, but the problem is that spending has grown more, creating a deficit in finances, which affects public investment in infrastructure, education and health,” said businessman Jesus Canahuati, who is also President of the Honduran Maquiladores Association. “Bad use of state money exists. Much is made of politics at the expense of investment in the social sector and infrastructure to create more growth and development, because you cannot do much without roads, communications and energy,” he added. COHEP’s study also revealed how excessive Honduran consumption has increased and is evident in the failure of production in areas such as agriculture and intermediary and industrial goods, which have to be imported. - (El Heraldo) Company promises 50,000 telephone lines The Honduran Telecommunications Company (Hondutel) received a formal request from a Honduran company to install the first 50,000 telephones in the country’s main towns. Hondutel’s manager Alonso Valenzuela did not want to reveal the company’s name but said it has already started to import the necessary technology to get the project “Telephones for everybody” under way. Hondutel is planning to reform its Organic Law in order to facilitate Maduro’s program, which aspires to install about 600,000 telephones during his presidential period. Valenzuela stated that another four companies have expressed interest in the project but so far they have not presented a formal request. Another project is aiming to recover national communications sovereignty in 180 municipalities situated on the border with Guatemala and El Salvador. In the villages and municipalities located near these borders there is a strong presence of cellular phones connected to Guatemalan and Salvadoran networks. This has been called an invasion of national sovereignty by many Hondurans. The project has an estimated cost of six million dollars that will be donated by an international telecommunication company. The financing of the project will also require a national counterpart. (El Heraldo) G-15 presents reduction of exemptions before Congress G-15 representatives in Honduras met with heads of political groups and the board of directors of the National Congress Tuesday to establish the sentiment in the legislative house as government talks with the International Monetary Fund (IMF) come to a close. Representatives from the legislative power said they had not yet received the document on this matter, but they reiterated they will not approve any measures that hurt the interests of most of the Honduran population. The G-15 is a group of 17 developing countries from Asia, Africa and Latin America, set up to foster cooperation and provide input for other international groups, such as the World Trade Organization. The ambassador of Spain, Javier Nagore San Martin, who acted as spokesman for the G-15, said the group spoke with members of the legislative power about the Honduran government’s negotiations with the IMF. An IMF delegation will arrive in order to reach a new agreement toward the middle of this month. He said the IMF proposed a reduction and maintenance in the in the salary bulk, an important prerequisite, though not the only one. “But we insist on the reduction of fiscal exemptions, that they pay all the taxes they need to pay and, at the same time, that they may always act in favor of all of the least favored sectors” he said. - La Tribuna
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| Monday, November 3, 2003 Online Edition 43 | ||
Difficult to freeze prices of food products The leader of the workers union launched a petition to the government to freeze prices on staple foods. On Tuesday, managers and civil servants said the proposal was unacceptable because Honduras now has a free market economy and the government has frozen public sector’s salaries. According to workers, the monthly Lps. 2000 average minimum wage is just enough to cover 57% of staple foods costs, which amount to Lps. 3,513.30. Gustavo Alvaro, ex secretary for the presidency, said the policy of freezing salaries is wrong because they become insufficient to the cost of living. Three-way negotiations between government, managers and workers are struggling to produce an agreement on the freezing of salaries. A similar agreement was reached last year, but present conditions are not allowing for a new settlement. According to the executive manager of Cohep, Benjamin Bogran, the demand is impossible to meet. The economy is currently subjected to external factors that are beyond the influence of the government and the productive sectors. He illustrated the point by mentioning international cost variations of oil by-products and other raw materials used to manufacture food products. Irving Guerrero, sub-secretary of Foreign Commerce, said the present economy is free to fix prices, taking into consideration factors of offer, demand and costs. “Any attempt to fix prices becomes complicated and it is not the best way to master a free-market economy.” Guerrero stated that the government cannot force anybody to sell a product at a certain price. In light of the situation, workers will voice their concerns during negotiations over the minimum salary which are hoped to start at the beginning of next month.- El Heraldo They will deny accusations against maquilas Following requests by business persons, the Workers’ Secretary Office will begin an investigation on working conditions in the Southeast Textiles factory of Choloma. The factory manufactures textiles for the Sean John’s range of clothing, owned by famous rap singer Sean “P Diddy” Combs. The request for the investigation was put forward by Jesus Canahuati and Jacobo Regalado, presidents of the Honduran Association of Maquiladores. Its aim is to prove national and international observers that the accusations made by Lydia Eli Gonzalez are not true. Gonzalez, who was employed by Southeast Textiles, said that employees of the factory are forced to work long hours with no extra pay, in unhealthy and abusive conditions. Conahuati says he does not know the motivations behind the campaign financed by United States unions. Honduran union leader Israel Salinas has also joined the campaign. According to Conahuati, Salinas does not appear to be concerned about the welfare and prestige of the country. He added that none of the accusations have been proved and he called this a dirty campaign against the country and its foreign investors aimed at opposing the CAFTA. The manager of the maquila said he regretted that some Honduran union leaders were damaging the reputation of a sector that benefits more than 122,000 people. - El Heraldo Eggs increase Lps.15 a carton This week poultry farmers and business companies increased again the price for 48 unit egg cartons, bringing the price to Lps. 48. None of the offices for the protection of consumers took responsibility for the complaints put forward by consumers through the media. The complaints relate to an increase of Lps.15 over a five week period. The minister for Agriculture and Animal Husbandry, Mariano Jimenez said this was unjustified because there have been no reported cost increases of goods and raw materials used by poultry farmers. - La Tribuna
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