Business Law Perspectives News and Opportunities in Central America

BLP’s summary of the most important regional news and opportunities offers an overview of the economic, social, and political landscape of Central America at just a click away. From July 19 to July 25, 2025 CABEI debuts with social bonds in Costa Rica worth ¢71.5 billion The Central American Bank for Economic Integration (CABEI) made its first social bond issue in Costa Rica for ¢71.5 billion, with a ten-year term and high demand from institutional investors. This operation, labeled as ESG, represents the first of its kind by a multilateral bank in the country, seeking social and environmental impact and good governance practices. The issue was oversubscribed and consolidated CABEI as the main multilateral issuer in the Costa Rican market. With this placement, the total amount issued by the bank in Costa Rica amounts to ¢353.136 billion. The transaction marks a milestone in the development of the local financial market. Click for more information Costa Rica will see low inflation, a stable exchange rate, and moderate economic growth in the second half of 2025 Costa Rica will close the second half of 2025 with moderate economic growth, low inflation, and a stable exchange rate. GDP is expected to increase by 3.5% this year, driven by domestic demand and consumption. Although exports will face a challenging international environment, they will continue to contribute positively. Inflation is expected to end the year at 0.2%, still far from the Central Bank’s target range, while the Monetary Policy Rate is expected to remain at 3.75%. External factors, such as international oil prices and the climate, will influence these results. Click for more information Judicial suspension of the implementation of Tribu-CR A court order halted the implementation of the Integrated Tax Management System (Tribu-CR) digital tax system at the Costa Rican Ministry of Finance, which sought to unify all electronic services on a single modern platform. The plan included migrating data from existing platforms such as EDDI-7, ATV, TRAVI, and DeclaraWeb to Tribu-CR and disabling these systems as of July 18. The resolution was published in La Gaceta on July 11. In addition, the information in the “Tax Situation” query would be temporarily frozen on the ministry’s website. This measure represents an important step in the country’s fiscal technology management, although it remains suspended for now. Click for more information Costa Rica and France join forces for sustainable agri-landscape management The four-year Tempisque REGENERA project, with a budget of €3.6 million, aims to improve sustainable management of the lower Tempisque River basin and the Gulf of Nicoya in Costa Rica. This initiative promotes agricultural practices compatible with biodiversity conservation and carbon neutrality. It aligns with key national policies and fosters collaboration between the agricultural and environmental sectors. The participatory and integrated approach aims to strengthen rural livelihoods and serve as a model for other regions. According to authorities, the sustainability of agri-landscapes is essential for food security and community well-being. Click for more information Costa Rica is the country in the Americas that attracts the most foreign millionaires, according to an international report Costa Rica leads Latin America as a destination for foreign millionaires, attracting some 350 in 2025, according to the Millionaire Migration Report by Henley & Partners and New World Wealth. The total wealth of these migrants is estimated at $2.8 billion. Panama ranks second in the region with 300 millionaires and $2.6 billion. Unlike these countries, Argentina, Mexico, Colombia, and Brazil report an outflow of wealthy individuals. Only Costa Rica and Panama appear on the list of Latin American destinations with a positive balance of millionaires. Click for more information Salvadoran exports grew by 6.5% and totaled $3.418 billion in the first half of the year During the first half of the year, Salvadoran exports grew by 6.5%, reaching $3.4183 billion, which represents $208.9 million more than the previous year. Although less volume was exported in June, the value of exports increased by 12.5%. On the other hand, imports totaled $8.682 billion, 11.5% more than in 2024 and double the value of exports. The growth in imports was concentrated in consumer, intermediate, and capital goods, while maquila declined by 12.5%. These data reflect a sustained recovery in foreign trade in El Salvador after years of negative results. Click for more information El Salvador accumulates $735 million in Bitcoin El Salvador has accumulated $735 million in Bitcoin, consolidating a reserve of 6,244 units of the cryptocurrency. This investment has been made through weekly purchases since the country adopted Bitcoin as legal tender in 2021, although the measure was suspended in January this year. The recent purchase coincides with a rebound in the value of Bitcoin following the enactment of the GENIUS Act in the United States, which regulates stablecoins. The International Monetary Fund has recommended that the Salvadoran government reduce its exposure to cryptocurrencies and divest state participation in the Chivo Wallet. Authorities consider these actions key to mitigating financial risks associated with digital currencies. Click for more information El Salvador partially complies with IMF recommendations for 2023 In 2023, the government of El Salvador restricted access to the full IMF report on the national economic assessment; only a technical summary was made available. After signing the Extended Fund Facility (EFF), transparency improved, and the document was published in March. Of the 13 IMF recommendations, six were implemented, four are in progress, and three remain to be implemented, notably the elimination of Bitcoin as legal tender and greater transparency in operations related to this cryptocurrency. The government shared detailed information on Bitcoin wallets and public funds, as well as Chivo’s financial statements. These actions seek to mitigate risks and strengthen international confidence. Click for more information El Salvador received more than $735 million in additional remittances in the first half of the year During the first half of the year, El Salvador received an additional $735.7 million in remittances, reaching a total of $4.838 billion, which represents a 17.9% increase over the same period in 2024. This growth is the most significant since 2021, when there was an upturn after the pandemic. The increase has been attributed to fears among the Salvadoran community in the United States over stricter immigration policies. In June alone, $862.9 million was received, a figure lower than the record set in May, driven by Mother’s Day. The cumulative amount is the highest in the last three decades. Click for more information Bitcoin transactions will be included in El Salvador’s economic statistics Salvadoran authorities have committed to the International Monetary Fund (IMF) to include all Bitcoin transactions in the country’s macroeconomic and budgetary statistics, according to the Article IV report for 2025, which also contains the first review of the program that El Salvador has undergone with this organization. Click for more information Guatemala receives more than Q3 billion in foreign investment in 2025 During the first quarter of the year, Guatemala exceeded Q3.3 billion in foreign direct investment, with notable contributions from the financial, automotive, and manufacturing sectors. According to the Bank of Guatemala, this represents a 17% increase compared to the previous year. The Minister of Economy, Gabriela García, pointed out that if this pace continues, the country will not only reach but could even exceed the investment goal set for this year. This growth reflects the authorities’ confidence in the country’s economic strength and its ability to attract international capital. Click for more information Financial inclusion rose to 65% in five years In Guatemala, financial inclusion has advanced significantly, with the percentage of the adult population with active bank accounts rising from 37% to 65% between 2019 and 2025. This progress is attributed to the National Financial Inclusion Strategy (ENIF), supported by the government and President Bernardo Arévalo. Despite this positive leap, challenges remain in achieving full inclusion. The government seeks to promote a more equitable and competitive system, benefiting individuals and businesses. This progress puts the country on par with the Latin American average. Click for more information Tax collection grows by 8.7 percent Tax collection in the first half of the year reached positive figures. As of June, tax collection by the Superintendency of Tax Administration (SAT) reached net revenues of 56 billion 045.5 million quetzals, which exceeds by 8.7 percent the amount collected in the same period of 2024, which was 51 billion 572.8 million. Compared to the target set for the first half of the year, this translates into an execution rate of over 101 percent. In terms of foreign trade taxes (VAT on imports and customs duties), the entity has collected 16,453.6 million quetzals, 29 percent of the total. Click for more information The clothing and textile sector has lowered its growth target for 2025 due to the impact of US tariffs The clothing and textile sector in Guatemala experienced a recovery in 2024, reaching exports of $1.933 billion, although still below the record set in 2022. For 2025, initial growth expectations of 7% were adjusted to a range of 1% to 2%, and a possible decline of up to 5% is even being considered. This adjustment responds to the impact of tariffs and higher costs to sustain international contracts, which have reduced companies’ profits and reinvestment capacity. Click for more information Limited economic impact expected following US tariffs on Guatemala Following the IMF’s downward revision of US economic growth, Guatemala adjusted its growth expectations for 2025, remaining within the expected parameters. According to the president of Banguat, the Guatemalan economy has shown resilience in the face of international challenges, such as tariffs and immigration policies. A new revision is expected in August, considering the evolution of geopolitical tensions and the global environment. GDP growth potential is 3.5%, with remittances representing more than 20% of GDP, surpassing other traditional exports. Although the pace of growth has slowed compared to previous years, the country remains on an upward path. Click for more information International reserves exceed $9.1 billion, according to the BCH The Central Bank of Honduras (BCH) reported that as of July 10, 2025, the country’s international reserves reached $9.461 billion, covering 5.8 months of imports, a figure higher than the previous year. This increase was mainly due to net foreign currency purchases and external disbursements, especially from CAF and IDB. Foreign exchange earnings totaled $11.699 billion, 26% more than in 2024, while expenditures also increased. In the first week of July alone, reserves grew by $181.3 million. These results reflect active and favorable management of international resources. Click for more information Honduras is making progress in complying with European regulations for deforestation-free exports Representatives from the European Union, European countries, the Honduran government, and productive sectors highlighted Honduras’ progress in adapting its exports to the European Regulation on deforestation-free products. The European market is the destination for 54% of Honduran coffee, 55% of palm oil, and 90% of cocoa. Among the most notable achievements is the creation in 2024 of an inter-institutional technical committee led by the ICF. This committee supports the adaptation of export sectors to European requirements. The EU highlighted these efforts in an official statement. Click for more information CAF disburses first $79.3 million to the Honduran government The Andean Development Corporation (CAF) recently disbursed $79.3 million to the Honduran government, according to the Central Bank, as part of a total of $83.6 million received in the first week of July 2025. These funds, together with $4.3 million from the IDB, are part of five loan operations totaling $570 million for key projects. Among the loans granted by CAF, 80.9 million is earmarked for gender equality, 70 million for public investment, 40 million for coffee farming, 120 million for migration strategy, and 160 million for the road network. These operations seek to strengthen strategic sectors and support the country’s sustainable development. The joint work between the government and CAF demonstrates a commitment to Honduras’ economic and social growth. Click for more information Moody’s reaffirms Honduras’ B1 rating with a stable outlook Moody’s reaffirmed Honduras’ B1 credit rating with a stable outlook, highlighting the strength of its fiscal position and sustained GDP growth. The agency recognized the positive impact of economic policies focused on consolidating public finances and transparency. It also highlighted the effectiveness of the Medium-Term Macro Fiscal Framework for debt sustainability. A history of moderate fiscal deficits and stable public debt also contributed to this rating. Moody’s concluded that the Honduran economy has demonstrated resilience in the face of various shocks. Click for more information More domestic debt is being issued to finance the 2025 budget During 2025, the Honduran Ministry of Finance (SEFIN) has made progress in issuing domestic bonds to finance the national budget. As of July 11, 10.782 billion lempiras had been issued, mainly in national currency and a smaller portion in dollars. This represents 38.97% of the amount approved for this fiscal year, which totals 27.664 billion lempiras. The funds obtained are key to covering the government’s projected needs. The report was officially presented by SEFIN. Click for more information Nicaragua maintains economic momentum: Monthly Economic Activity Index reflects 3.3% growth In May 2025, the Nicaraguan economy grew by 3.3% compared to the same month last year, with cumulative growth of 2.9% from January to May and an annual average of 2.4%. The sectors with the strongest momentum were mining and quarrying, commerce, hotels and restaurants, manufacturing, and transportation. However, activities such as fishing and aquaculture, energy and water, and public administration recorded declines. The dynamism in mining was driven by gold extraction, while the decline in fishing was due to lower production of shrimp and fish. Overall, the country showed moderate growth with sectors differentiated according to their activity. Click for more information Commerce, hotels, and restaurants have led economic growth so far this year Commerce, hotels, and restaurants, together with the National Financial System, are leading economic growth in Nicaragua this year. The Monthly Economic Activity Index (IMAE) showed an increase of 2.4% between January and May, with a notable 3.3% in May. This performance reflects sustained economic expansion, although at a slower pace than in previous years. The annual average for the indicator also stood at 2.4%. These data were published by the Central Bank of Nicaragua, highlighting the contribution of the aforementioned sectors. Click for more information Volcanic ecotourism grows by 7% in Nicaragua Volcanic ecotourism in Nicaragua experienced 7% growth in the first half of 2025, according to the Ministry of Environment and Natural Resources (MARENA), highlighting the Cerro Negro Volcanic Complex Nature Reserve and surrounding areas. Between January and June, nearly 30,000 visits were recorded, with tourists coming mainly from the United States, Germany, and the United Kingdom. Costa Rica and the Netherlands also stood out in terms of visitor numbers. International tourism was complemented by environmental monitoring initiatives, identifying 106 new species of wildlife. Click for more information

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