Financial Integration for Central American Markets
The Central American stock markets are making new moves towards financial integration to increase trading volume and attract foreign direct investment. Panama, Costa Rica and El Salvador may have an integrated stock exchange as early as the first half of 2009.
The three countries have been taking advice from Scandinavia’s integrated stock exchange about the best way forward and it is hoped that once regulatory and technical obstacles have been removed in the next few months, the path will be clear for a single trading platform. The project has been funded by the Inter-American Development Bank and single trading platforms across South America are also in the pipeline. In addition, Chile, Mexico and Brazil are in discussions about removing barriers to cross-border trading and Colombia and Peru may integrate their markets next year.
James Gonzalez, Market Analyst at Obelisk says, “This is very positive news for the region and will promote economic growth. Each of the countries have their own strengths and combining them will form a formidable financial force.”
At a conference organised by the Association of Central American and Caribbean stock exchanges (Bolcen), the Chairman of Panama’s stock exchange, Ricardo Arango, said, “We expect to generate significant interest and revenues once we become a more liquid and significant market.” He added that the Central American markets have also held preliminary talks in Peru and Columbia and are attracting considerable interest from companies in those countries who are keen to list shares in Central America.
An economist from the International Monetary Fund (IMF), Hemant Shah, said that such a move may spur the region’s expansion, and added that although full financial integration may take several years, it would contribute to financial development which will have a profound effect on economic growth. Rupert Stebbings, Head of International Sales at Interbolsa, Columbia’s largest stock brokerage said, “These markets are a new frontier, individually, they've lacked the scale and liquidity needed for foreign investors to enter, but combined they'll move onto Wall Street's radar screen.”
The United Nations Economic Commission for Latin America and the Caribbean reported that the Central American economies are expected to grow around 5% this year, despite the fact that the region faces rising inflation and is beginning to feel the effects of the ailing US economy, its main trading partner. Although growth has reduced across the region, the Central American economies are holding their own and the financial integration of their separate stock exchanges may be the answer.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
For press enquires, please contact Obelisk’s Marketing Department on (+34) 952 820 319 or email press@obeliskinternational.com
The three countries have been taking advice from Scandinavia’s integrated stock exchange about the best way forward and it is hoped that once regulatory and technical obstacles have been removed in the next few months, the path will be clear for a single trading platform. The project has been funded by the Inter-American Development Bank and single trading platforms across South America are also in the pipeline. In addition, Chile, Mexico and Brazil are in discussions about removing barriers to cross-border trading and Colombia and Peru may integrate their markets next year.
James Gonzalez, Market Analyst at Obelisk says, “This is very positive news for the region and will promote economic growth. Each of the countries have their own strengths and combining them will form a formidable financial force.”
At a conference organised by the Association of Central American and Caribbean stock exchanges (Bolcen), the Chairman of Panama’s stock exchange, Ricardo Arango, said, “We expect to generate significant interest and revenues once we become a more liquid and significant market.” He added that the Central American markets have also held preliminary talks in Peru and Columbia and are attracting considerable interest from companies in those countries who are keen to list shares in Central America.
An economist from the International Monetary Fund (IMF), Hemant Shah, said that such a move may spur the region’s expansion, and added that although full financial integration may take several years, it would contribute to financial development which will have a profound effect on economic growth. Rupert Stebbings, Head of International Sales at Interbolsa, Columbia’s largest stock brokerage said, “These markets are a new frontier, individually, they've lacked the scale and liquidity needed for foreign investors to enter, but combined they'll move onto Wall Street's radar screen.”
The United Nations Economic Commission for Latin America and the Caribbean reported that the Central American economies are expected to grow around 5% this year, despite the fact that the region faces rising inflation and is beginning to feel the effects of the ailing US economy, its main trading partner. Although growth has reduced across the region, the Central American economies are holding their own and the financial integration of their separate stock exchanges may be the answer.
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
For press enquires, please contact Obelisk’s Marketing Department on (+34) 952 820 319 or email press@obeliskinternational.com
Labels: Brazil, economy, investment, panama, property, real estate
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