VZCZCXYZ0004
RR RUEHWEB

DE RUEHSJ #2162 2721503
ZNR UUUUU ZZH
R 291503Z SEP 06
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 6218
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SAN JOSE 002162 
 
SIPDIS 
 
SIPDIS 
 
FOR TREASURY PASS ALICE FAIBISHENKO 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECIN CS
SUBJECT: JOINT STOCK EXCHANGE PLANNED FOR PANAMA, COSTA RICA AND EL 
SALVADOR 
 
1.(U) The stock exchanges in Costa Rica http://www.bnv.co.cr/, 
Panama and El Salvador have signed an agreement to develop a 
centralized electronic stock exchange in 2007.  The yet-to-be-named 
dollar-denominated exchange will deal in stocks and corporate debt, 
and will operate in addition to the existing exchanges in each 
country. 
 
2.(U) Costa Rica, Panama and El Salvador will open the planned 
regional stock exchange in the next 12 months. It is patterned after 
NOREX, a similar alliance between Denmark, Finland, Estonia, 
Iceland, Norway, Latvia and Sweden.  Although individual stock 
exchanges will continue to operate, to external observers the new 
joint exchange will look like a single market with a single set of 
standardized rules. If the joint exchange is successful other 
countries in the region may be invited to join. 
 
3.(U) The joint venture is a bid to boost liquidity in Central 
American financial markets. In 2005 the value of stock traded in 
Costa Rica was $203 million, versus $301 million in Panama and $173 
million in El Salvador. 
FRISBIE