Time deposits not considered speculative in any sense

First of all, why is it called speculative capital? Didn’t Costa Rica just issue bonds to pay off the national debt. Did they tax the people who bought their bonds. That’s just as speculative as a time deposit.

The definition from just about every financial dictionary defines Speculative Capital as

“The funds earmarked by an investor for the sole purpose of speculation. This capital is often associated with extreme volatility and a high probability of loss. Most speculators have short-term investment horizons and often use high degrees of leverage in their efforts to obtain profits.”

Does that sound like a time-deposit to you?

Instead of “taxing” the money coming in, why don’t they lower the interest rate offered on time deposits in colons? Why don’t they lower the rate for people borrowing money, too. People buying time deposits is what allows banks to make loans to build a factory or create a tourism location. If they are getting too much in and not making enough loans, they should reduce the interest rate paid, and people will stop buying them. Then they can lower the rate for people borrowing money. The government already takes their cut right off the top on time deposits. I didn’t hear that mentioned in the article at all.

This is just an excuse to create another tax. What if the money being sent was to buy a house? Just one more reason people will opt for Panamá. There isn’t any kind of money that comes into a country that isn’t productive.
Pat Sullo
San Luis de Tilarán

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