State Intervention in Times of Crisis

Should the state intervene more in economics issues? Should governments take more control of the market?

These are some of the questions that were discussed at a forum organized by the National Foundation for the Development of El Salvador (Funde), whose results were collected by El Diario de Hoy.

It highlighted the opinion of William Pleitez, UNDP senior economist, who argued that in the current situation "protectionism is inevitable."

Source: elsalvador.com

More on this topic

Costa Rica: Banco Popular Assumes Coopemex Liabilities

June 2010

Bank “Banco Popular” will buy 100% of the liabilities of intervened financial cooperative Coopemex, and will put in place a trust to manage its assets.

The announcement was made by Gerardo Porras, General Manager at Banco Popular. He noted that the operation should be completed no later than June 10.

Employers Applaud Port Intervention

March 2012

Guatemala’s business sector is calling for processes to expedite the delivery of goods to be taken into account in order to avoid economic losses.

From Diario de Centroamérica, by José Pelicó:

Intervention over Port Santo Tomás Welcomed

The business sector sees the government of Otto Perez Molina’s intervention with the company Portuaria Nacional Santo Tomás de Castilla (Empornac), in Puerto Barrios, Izabal, as positive as this will put things in order and prevent further corruption.

Costa Rica: Coopemex Cooperative Intervened

February 2010

The financial Superintendence (Sugef) has intervened Coopemex, a savings and loans cooperative, for hiding losses.

With this decision, 88.000 investors will lose access to their funds at the entity, for at least 90 days.

From Nacion.com: “Sugef stated that Coopemex had an off-balance-sheet loan portfolio, in which delinquent debtors were not reported.

Honduran banks afraid of government intervention

January 2009

The election of former Foreign Minister Milton Jiménez as president of the National Banking and Insurance Committee, following the removal of Gustavo Alfaro, caused unrest in the banking sector.

As published by elfinancierocr.com: "Alfaro was removed after presenting a report on the deposits of honduran banks in foreign entities, which, according the the Central Bank of Honduras, grew in over $200 million in 2008, causing a decrease in financial liquidity and high interest rates".