Bank of the Year, Costa Rica: BAC San José

Bank of the Year, Costa Rica: BAC San José

Bonds Structured Finance Costa Rica Corporate & Sovereign Strategy

The economies of Central America are all tied to the performance of the US, but Costa Rica has a particularly strong connection — a dynamic that is not always positive. As developed market central banks flirt with ending quantitative easing, Costa Rica is bracing for fallout. The country has received extensive inflows of speculative capital over recent years. That has driven its currency, the colón, up against the dollar. Now, banks are steeling themselves for a reversal in the flows. “Rates in the developed world are going to rise,” says Gerardo Corrales, general manager of BAC San José. “This will cause capital to exit, and a devaluation of our currency. Our strategy has been to keep

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial