By Nicole Mendoza

In order to achieve economic stabilization and encourage saving for future generations, the Cabinet Council of Panama approved the bill proposing the creation of the Panama Savings Fund (PSF).

Fundings for this organization will come from the total assets of the Trust Fund for Development, and assets for future contributions will be purchased from contributions of the Panama Canal, which extended from 2015.

The Deputy Director of Investment and Risk Concessions, Ministry of Economy and Finance, Diego Ferrer, said that the formulas to withdraw money from this fund will be in states of emergency declared by the Cabinet as long as the associated cost is equal to or greater than 0.5% of GDP.

Another measure to be used in this fund will be in stages of economic downturn, when the increase in real GDP is 2% or less for three consecutive quarters, and in the repurchase and retirement of sovereign debt.

By Eduardo Cano

Nicaragua will have the first and largest solar power plant in Central America, with a huge investment donated by Japanese cooperation amounting to $ 12 million. The center of this power plant will be located in the community of Trinity, 12 kilometers from the city of Diriamba.

This is a great ecological mirror generator, which will reach over 200 thousand homes in rural Diriamba.

By Hector Marroquin

Despite pressure from various sectors, Laura Chinchilla, president of Costa Rica announced that she will continue insisting on achieve tax reform to reduce the high fiscal deficit, despite a tax evasion scandal of some elements of her cabinet.

Chinchilla stressed: The events of recent days will not stop me ... we will continue the fight to carry forward the tax reform.

It was discovered that several ministers have been invading taxes, such as Finance Minister, Fernando Herrero, who was forced to resign his post after it was discovered that he had properties valued for quantities less than the real, so he paid less taxes.

By Josué Mendoza

In the last two months in Panama tourism has grown remarkably, with a 5.7% increase, as reported by the Tourism Authority of Panama (ATP). According to the agency in charge of tourism in this country, about 429, 073 visitors have come to Panama, indicating was that a total of 23.145 passengers more than during the same period last year.

One of the main gates of tourism in this country remains the Tocumen International Airport and the air terminal that have arrived in 265, 999 tourists in the two months described. This was what gave positive results for tourism in Panama and in the area of the cruise was 14.3% indicating negative numbers and the known Paso Canoas reported only 0.1%.

By Saaron Rose

 In the first 60 days of the year, El Salvador has received 635.5 million, indicating that it has received more remittances compared to the same period of 2011, with 53.4 million dollars more this year.

According to the Reserve Central Bank shipments have grown by 12.6%. After the economic crisis in 2008, has seen recovery for this country since 2010 had a gradual recovery period, despite the fact that unemployment rates for Latin Americans in the United States have increased in recent years to reach 10.7%.

By Tony Paul

Nicaragua's National Assembly approved the budget for 2012, of 1,827 million dollars, and included a round of $ 3.8 million for the Bank of the Bolivarian Alternative for the Americas (BALBA), criticized by the opposition.

The Executive's spending plan, which passed with 65 votes in favor, 25 against and two Assembly members absent, was approved at a session in which the opposition accused President Daniel Ortega and his family of benefitting from the cooperation that Venezuela sends Nicaragua and totals 1944.5 million since 2007, according to official figures.

By Lara Holmes

The Central Bank of Costa Rica (BCCR) announced on February 14 a further increase in interest rates from their electronic deposits for terms between 60 and 360 days.

The change is an increase of 0.25 percentage points for all terms involved.

By Lara Holmes

The international landscape is complicated, but the Government of El Salvador expects new policies, institutions and programs to move the country's economy forward. Although there are strong bets, the challenge to improve public finances is still pending.

The Salvadoran economy will grow again almost zero: the official growth target is 2%. In the midst of a complicated international situation, Alex Segovia, head of the Technical Secretariat of the Presidency (STP) said that in 2012 domestic production (measured by gross domestic product, GDP) would grow from 1.99% to 2.5% .

By Eliane Portillo

Latin America will become the great new economic, political and social bloc of the century, stated Rodrigo Cabezas, president of the Latin American Parliament (PARLATINO) Venezuela Chapter.

That is the mission that we, Latin Americans, have in this historic time we are living, said Cabezas, who gave a lecture titled The Challenge of Integration: CELAC and UNASUR.

By Susana Lima

The presidential delegate for investment Alvaro Baltodano, said the company might restart operations this year thanks to three potential buyers of the textile company.

With an investment of 100 million dollars, the International Textile Group (ITG) began Cone Denim operations in 2008, but was closed in 2009 due to the small market that resulted from the international economic crisis of that time, which left nearly 700 unemployed people in Nicaragua.

By Eliane Portillo

Two Central American countries took different approaches last week, in deciding how wealth should be produced and shared.

El Salvador passed a law, which will make companies and higher-income people pay more taxes.

By Eliane Portillo

Depending on how you look at it, economic integration among Central American countries is barely making progress, or else the process is moving slowly but steadily forward. Three developments last week two forums, both held in Merida, Mexico, and an agreement on new Mexico, Central America trade rules  can support either perception.

The latest summit of the Tuxtla Mechanism creates a management unit, which promotes the development of a regional road infrastructure, and electric and telecom interconnection.

By Eliane Portillo

Banking systems in Central America and the Dominican Republic will continue to strengthen their financial performance in 2012, with credit expansion and lower non-performing loan (NPL) ratios being key to sector profits, according to a Fitch report.

The ratings agency expects moderate credit growth in the region in 2012, with those countries with a better economic outlook, particularly Panama, Costa Rica and Guatemala, expected to show the highest credit growth.

Central American banks are also expected to improve their loan book quality in 2012, although Fitch noted that some Costa Rican and Dominican Republic banks could continue to show high NPL ratios in the first few months of this year.

Fitch said that the region's financial institutions are gradually adopting best international practices but remain sensitive to downturns in the global economy, although this does not threaten the stability or solvency of the Central American banking systems.

By Eliane Portillo

More than 160 thousand workers of the Nicaraguan State and seniors will receive from Friday on the solidarity bond with which the government helps low-income people.

The coordinator of the Communication and Citizenship Council, Rosario Murillo, announced the first bond payment in 2012 as a continuation of the policy of restitution of rights promoted by the Government led by Daniel Ortega.

By Eliane Portillo

Poverty and unemployment will be Honduras' core challenges for 2012, warned Ramon Espinoza, head of the National Institute of Statistics (INE).

The country generated only 60,000 jobs in the private sector, of 200,000 needed to meet the growing demand from the population, and poverty grew 5 percent in urban areas as a result of the economic crisis, said to the news, quoting Espinoza, who added that the problem was not population growth, but that people remain poor.

By Eliane Portillo

Although Latin American countries have seen tremendous reform in financial supervision, regulators need to be constantly adapting to market changes, IDB capital markets and financial institutions division chief Kurt Focke told.

The division has recently approved separate US$40mn loans to Honduras and Suriname, as well as US$50mn to Trinidad and Tobago, to improve financial supervision and regulation.

While development of financial supervision in the region has been very strong, regulatory reform must be viewed as an ongoing process and not as an end in itself, Focke said.

IDB's capital market and financial institutions division only works with regulators on request, so the high demand for its services over the last couple of years is a positive sign of interest among regional authorities to continue improving supervision, Focke noted.

By Fernando Álvarez: Ex IMF Economist

Until not too long ago, Rony Barahona used to wake up at 4 am every day to join the lines of job seekers outside factories in the outskirts of this city, the Honduran industrial capital. Although smart and able-bodied, the 21-year-old would return home empty handed, with no money to support himself or his beloved mother. Honduras is one of the poorest countries in Latin America. About 65 percent of its 8 million people live in poverty. Informality prevails in its labor market, affecting particularly the young, women and persons with limited education. Rony’s prospects improved dramatically in 2011 after he was selected by the Honduran Maquila Association to participate in a job placement program run by the Ministry of Labor and Social Security.

After three months of on-the-job training, Rony got a job at Honduras Electrical Distribution Systems, where he supervises and trains new employees in an electric wiring unit. “Now, with a stable source of income and benefits, I can provide for my family and plan for my future. I want to study engineering to grow professionally and my company supports me. I am grateful for the opportunity I was given through the program,” Rony smiles with gentle and hopeful eyes.

By Eliane Portillo

People with severe disability, the elderly, mothers of Nicaraguan heroes and martyrs are now receiving special food packages as part of the social plans by the government to help the most vulnerable groups.

The distribution is still going on in the entire country, as confirmed by the local authorities, with the aim of reaching more than 24,300 families as soon as possible.

In the case of the disabled, the program includes citizens in the Todos con Voz (All with a Voice) program, performed by brigades of Nicaraguan and Cuban doctors, to update the health diagnosis and recommend specialized attendance.

Members of the Sandinista Youth Organization make visits to homes to distribute the packages in districts and communities, also benefitted by other social projects like Plan Techo, Viviendas Dignas (Worthy Houses) and Usura Cero (Zero Usury), said the national press.

On the eve of Christmas, this is an object of journalistic reports, but the aid, approved in 2010 by President Daniel Ortega, invariably arrives monthly at more than 24,000 homes up to now.