BUSINESS & ECONOMICS |
BUSINESS & ECONOMICS |
Monday, June 19, 2000 Online Edition 25 |
Private sector warns of bankruptcy due to FTA Felipe Antonio
Peraza, president of the National Industrial Association (ANDI), recently
stated that the effects of the free-trade Agreement with Mexico to take
effect next year will force several companies to close.
Although Peraza did not specify the causes of bankruptcy, he stated
that the competition will overwhelm many national companies, but that this
is to be expected due to the modernization process, and it remains to be
seen which ones will go under. He also said
that the playing field will not be level since many sectors are subsidized
in Mexico, while there is not one single industrial company subsidized in
Honduras. He gave as an example
the cost of electricity in Mexico, which is US$0.12 compared to between
US$0.12 and US$0.14 in Honduras. Peraza also
mentioned the fact that due to tariffs placed on goods exported to Nicaragua
and on milk and agricultural products to El Salvador, Honduran businesses
are losing approximately Lps. 5 million a month. --
La Tribuna C.A. to create unified tourism strategy In a meeting
held in Guatemala earlier this month, the Central American Tourism Council
agreed to create a unified tourism strategy for the area.
Participants included the Central American Tourism Federation, the
Central American Hotel Federation, representatives of the Secretary General
for Central American Integration and the German Technical Agency. It was agreed
to establish an alliance between the public and private sectors for the
purpose of creating a unified marketing strategy that includes Belize, Costa
Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
During the
meeting, a report by the World Tourism Organization was presented which
included the following statistics: 3.9 million tourists visited Central
America last year, the tourism industry experienced a 16.2 percent rate of
growth, or eight times that of the rest of Latin America.
The document, "Tourist Market Tendencies: The Americas
2000," emphasized the vigorous growth rate of tourism in the region,
stating, "Central American institutions have recognized the importance
of tourist activities and have given it priority in their action
plans." -- El Heraldo New Artisans Market opens in SPS The Honduran
National Artisans Association opened yet another market last week for the
sale of products produced in Santa Barbara, Valle de Angeles and
Tegucigalpa. This is the third
market place the Association has opened and is located at the old train
station in San Pedro Sula. Aside
from 30 booths for the sale of products, there will also be six food stands
for tourists to enjoy the flavor of Honduran fare. --
El Tiempo Lempira devaluation continues Although in
controlled manner, the lempira continues to lose value against the U.S.
dollar due for the most part to the expense of importing raw materials used
by the manufacturing sector. According
to experts, the increase from Lps.14.50 for US$1.00 in December 1999 to Lps.
14.96 for US$1.00 in June of this year translates into a 3 percent raise in
devaluation -- a raise that even larger reserves of US$1,473.6 million,
refundable international credits or financial reconstruction funds have been
able to stop. Experts agree
that the devaluation will continue until a substantial increase in national
production provides the lempira a solid base.
However, the four to five percent increase in the gross national
product during the year might contribute toward improving the rate of
exchange, as will the privatization of telecommunications, airports, ports
and pension plans that will allow for an increase in foreign capital in the
form of investment. -- El Tiempo |
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Monday, June 12, 2000 Online Edition 24 |
Trade balance down from last year According to
Central Bank figures, during the first quarter of this year the nation's
trade balance dropped to US$288.6, down from US$398.3 million during the
same period last year. However,
imports kept growing and have reached a total US$676.4 million through May.
The increase in imports was reflected mostly in the oil industry, with the
government spending US$87.8 million on petroleum products --
an 87% increase over last year.
Other import increases are attributed to food products (meat,
vegetables, oils), chemical products, and plastics, among others. Exports also
increased US$57.2 million over last year due to increases in banana, coffee,
zinc and wood exports. -- El Tiempo Union seeks aid to buy phone company shares The Union of
Telecommunications Workers last week asked the government for help in
securing financing that would enable members to buy 2 percent of the shares
of the soon-to-be privatized Honduran Telecommunications Company (HONDUTEL). Accordingly,
the privatization law includes paying the company's 4,000 workers over Lps.1
billion in severance pay and bonuses as well as ceding 2 percent of the
company's shares at market value. The
manager of HONDUTEL stated that due to the high price of the shares to be
auctioned on July 17, it is necessary to seek financing for the union since
the government will neither buy the shares nor serve as guarantor for any
loans for this purpose. As to the worth
of the company, the manager stated that assets are still being evaluated,
but that the amount on the books is approximately US$600 million, plus
280,000 installed phone lines and the capacity for market expansion.
-- El Tiempo Inflation to continuing rising According
to the Central Bank of Honduras, inflation from January to May of this rose
5.3 percent or nearly half the estimated 11 percent predicted for the whole
year. However, other sources
are predicting inflation will rise 11.9 percent and that the lempira will be
devaluated by 6.8 percent, to an exchange rate of Lps. 15.66 for US$1.00 by
the end of the year. -- El Heraldo Garifunas are exporting Casabe The
ethnic Afro-Caribbean food, cassava, a round, flat bread made from ground
manioc, has found its way on to international markets and is being sold in
the United States for US$3.50 a loaf. The
casabe sold under the trade mark Ereba is produced by 20 Garifuna women from
the communities of Sambo Creek, Corozal and Monte Pobre in the department of
Atlantida. Casa Gari, a
Garifuna firm founded in 1997 with offices in La Ceiba, New York, New
Orleans and Miami, distributes the product and expects to sell 100,000 boxes
of 20 loaves each by the end of this year.
--El Tiempo |
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Monday, June 5, 2000 Online Edition 23 |
Honduras invited to join union In response to criticism of the Central American Transportation Federation (FECATRANS) concerning the commercial route to be established between the signatories of the Pacific Triangle Agreement (Guatemala, El Salvador and Nicaragua), Salvadoran President Francisco Flores last week officially extended an invitation to Honduras to join the union. Flores explained that the triangle was created for the purpose of contributing toward the Central American integration process and its intention was never to isolate Honduras or any other country. He also stated that reestablishing the commercial route is a very important factor in as much as reactivating the economy is concerned. Meanwhile, FECATRANS claims the project is too big, expensive and risky. -- El Heraldo FTA will finally be signed The ministers of economy and commerce from Guatemala, El Salvador, Honduras and Mexico will sign a free trade agreement on June 8 in El Salvador following eight long years of negotiations. Presidential signatures are scheduled for the last 10 days of June, probably in Chiapas, Mexico, and will go into effect as of Jan. 1, 2001. -- El Heraldo Poor quality increases coffee export sanctions Due to the poor quality of coffee produced for export in Honduras, the International Coffee Organization (OIC) increased sanctions on each quintal (100-pound sack) of Honduran export coffee from US$20 to US$23 effective May 29. "In other words, for every quintal of coffee exported, the producer only receives US$77. From these US$77, another US$5 is subtracted for the exportation certificate, and along with other costs the coffee grower ends of receiving only about US$55 per quintal," said Juan Jose Osorto, manager of the Honduras Coffee Institute (IHCAFE). Osorto said that in his opinion, the OIC sanctions are arbitrarily decided upon, explaining that the quality of Honduran coffee is not poor, but rather has a bad image on international markets. He added that contraband Honduran coffee has been sold by Guatemala on international markets as first-class coffee. Osorto also said that to the coffee buying countries these sanctions are a means of manipulating international prices in their favor. Currently, IHCAFE is planning an international advertising campaign to improve the image of Honduran coffee around the world. Honduras has region's highest interest rates According to the Central American Monetary Counsel, Honduras has the highest bank interests rates in the region. In 1999, Honduran banks were charging 30.2 percent on loans and were paying 20 percent on savings account deposits. For the same year, Costa Rica charged 28.2 percent on loans and paid 21.8 percent for savings; El Salvador charged 15.5 percent for loans and paid 10.7 percent for savings; Nicaragua charged 22.1 percent on loans and paid 11.5 percent for savings; and Guatemala charged 19.5 percent for loans and paid only 8 percent for savings. Campesinos complain about NGOs In a meeting held on Monday with Minister of Technical Cooperation (SETCO) Arturo Corales Alvarez, representatives of 18 campesino organizations complained that many non-governmental organizations (NGOs) have used them to solicit financing from international organizations, but to date they have reaped no direct benefits from these funds. Campesino leader Marcial Reyes said in an El Tiempo report, "we have no information on how many NGOs are managing projects in which they were the reputed intermediaries between our groups and international financing institutions. For this reason we are demanding that they stop utilizing campesino groups to solicit funding." Corales told the representatives that the international community had earmarked US$972 million for reconstruction, of which US$200 million will go toward reactivating agricultural production. He also agreed to develop a workshop on May 20 and 21 to discuss transparency of existing and future projects. "The campesinos want information concerning project executors, whether government or NGO," Corales said. "We are more than willing to provide this information, the campesinos as well as the Honduran people have a right to know how the government is handling international reconstruction funds." -- La Prensa |
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