Tag Archives: investment


This situation of increased inflationary pressures and a provision that encourages consumption, generates the feeling that it may be approaching a period of rising interest rates. Market analysts are pessimistic about inflation, believing that it is unlikely that Central Bank of Colombia to meet its inflation target for this year. In this situation, it is logical to expect the Central Bank of Colombia decided to increase its benchmark rate, as is expected from the market. But the Central Bank’s monetary policy in Colombia is facing a dilemma every time you decide to keep or raise your interest rate. Is that the high level of the same, together with pressure on currency appreciation and context of stability of the Colombian economy, generates a more than attractive to foreign capital. These foreign capital as valued and desired by the economy, are creating problems for Colombia and that influence the exchange rate affecting the competitiveness of the Colombian economy. A leading source for info: Mark Zinkula.

That is why the Ministry of Finance decided to raise from 40% to 50% on unpaid deposit is required for portfolio investment into the country, established by the Government just over a year. In addition, the Government set a time Minimum stay of two years for a Foreign Direct Investment (FDI) entering the country. Logically, these measures have drawn criticism mainly by those affected, such as large foreign investment banks. But from my point of view, is a good measure to limit the negative effects generated by the rise in interest rates. It is true that these measures undermine the free movement of capital, but I understand that sometimes it is one of the few viable alternatives exist to speculative capital. From my point of view, the message is clear Colombia: “Colombia gives all the guarantees for capital income, but that they do not want to undermine the stability of the economy. It is therefore encouraging to those seeking to invest capital and to remain a good time in the country. “

Single Rate Business Tax

The key, as for the rest of the world is to increase domestic demand in the countries. Calderon has drawn a plan.

Let’s see … Ah! And a final bonus of Horatio. I can send comments to: What Have in Common Felipe Calderon and George Bush? Buenos Aires, Argentina March 5, 2008 I imagine that will come a myriad of assumptions about things in common that has two presidents. However, I’m only interested in one of them. Today I am referring to the Mexican government’s plan to mitigate the impact of U.S.

slowdown on Mexico: Calderon would not be less than the Bush friend and that is why it launched its own economic stimulus plan. The essence of the plan is, given the weakness in external demand caused by the deceleration (“can already say” recession “?) Of the U.S. economy, compensate for deterioration with a greater stimulus on domestic demand in Mexico. The plan consists of ten measures that include a 3% discount to the interim payments of tax on corporate income and Single Rate Business Tax (IETU), tariff and customs simplification, reduction of employer contributions, development of production centers in marginal areas, reduction in electricity rates, destination of funds for Development Banking … ah! I forgot! Mexican plan also contains tax incentives for individuals with business, at the time of its 2007 declaration electronically by $ 1,000 (about a modest U.S.