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)| false Mathieson, D., and J. Roldós, 2001, “How Important is Financial Sector FDI and What are its Impacts?” in Open Doors: Foreign Participation in Financial Systems in Developing Countries, ed.by ( R. Litan, P. Masson, and M. Pomerleano Washington: Brookings Institution Press).
Mattoo, A., and C. Fink, 2002, “Regional Agreements and Trade in Services: Policy Issues,” World Bank Policy Research Paper 2852 (Washington: The World Bank).
Stephenson, S., 2000, “GATS and Regional Integration,” in GATS 2000: New Directions in Service Trade Liberalization, ed. by P. Sauvé and R. Stern (Washington: Brookings Institution Press).
At the time of writing the status of Panama in the negotiations was unclear, and this country is hence not considered here.
This requirement is entered in the WTO schedules of commitments, and the application in practice of this requirement could not be verified.
The conglomerate Grupo Financiero Uno has established local banks under the same name, Banco Uno, in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The Conglomerate Corporacion UBCI has opened banks under the name of Banco Cuscatlan in Costa Rica, El Salvador, and Guatemala. Other banks have established strategic alliances, like that including Banco Agricola from El Salvador, Banpro from Honduras, and Caley Dagnall from Nicaragua.
For instance, Citibank is established in El Salvador, Guatemala, Costa Rica and the Dominican Republic; (the Canadian) Scotiabank in El Salvador, Costa Rica, and the Dominican Republic; and the British Lloyds in Honduras and Guatemala.
No detailed information was available for Costa Rica.
The so-called prudential carveout in Article 2 (a) of the GATS is fairly broad, and at present there is no formal agreement on what constitutes prudential measures. It states: “Notwithstanding any other provisions of the Agreement, a Member shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the Member’s commitments or obligations under the Agreement.”
The balance of payments safeguard in Article 2104, NAFTA.
The nature of controls that “substantially impede” transfers is set out in a side letter to the Singaporean authorities, but leaves room for interpretation in dispute cases.
There have been only few notifications to the WTO of economic integration affecting services trade, and the substantive provisions for determining compliance are as yet ill-defined; Stephenson (2000).
This is notwithstanding Article V 3 (b) under which in regional agreements that are comprised solely of developing countries members may discriminate in favor of service suppliers that are owned or controlled by natural persons of the parties to such an agreement.
Barth and others (2001).
Most Central American countries have adopted or encourage the use of International Accounting Standards (IAS). Nevertheless, the FSAPs found important deviations from these standards, even in countries that are reportedly IAS consistent.
Outside El Salvador, the share of foreign currency deposits in total deposits was substantial in Nicaragua (71 percent), Costa Rica (43 percent), and Honduras (33 percent), see De Nicoló and others (2003).
In the case of the Dominican Republic, for instance, banks may grant loans in dollars up to the entire stock of their foreign exchange deposits to importers and exporters only where the loan is trade-related. In addition, they may only extend loans and guarantees to a single borrower for up to 10 percent of their paid-in capital and reserves, and up to 20 percent of capital and reserves, if such operations are secured with first-rank mortgages or real guarantees. In Honduras, up to 50 percent of foreign exchange deposits may be lent for export-related activities and up to 15 percent of this amount may be lent for other purposes. The other fifty percent are subject to a 12 percent reserve requirement and a 38 percent liquid asset requirement, which must be kept at foreign banks.