Today's Stories: Deposit Insurance May Soon be Reality BCR Announces 1% Cash Back for Using Debit Card Exports Increase, in Spite of Intel Inflation Accelerated in July "Colibri" Public Phones Now Easier to Use Olympics Soccer: Morocco and Costa Rica Tie News Briefs

Banco de Costa Rica is the first Costa Rican bank to give customers a 1% cash back for using their debit card to make purchases.  Customers will have 1% of their debit card purchases credited to their account at the end of each month.

Cheese Fair in Turrialba. Are you a cheese lover? This weekend you can have a taste of all the different cheeses produced in Costa Rica at the Santa Cruz de Turrialba cheese fair. The Expoferia del Queso will count with 85 stands of every kind of cheese. The fair starts today and ends Monday. Santa Cruz is about 55 km (1 hour) from San José and you can get there by taking the road to the Irazú Volcano, taking a right at Cristo, passing Pacayas and Capellades.

Customers of BAC San José had heard through informal channels that the bank was going to be intervened by the banking authority, the General de Entidades Financieras (SUGEF), and quickly made withdrawls not to join the list of customers Banco Elca, the last recent bank to be intervened by SUGEF last June and Bantec that has been under control of the SUGEF since last year.

The situation has forced the financial community to take note.

The concept of the policy being discussed is that of the U.S. FDIC - Federal Deposit Insurance Corporation, an independent agency created by the U.S Congress in 1933 to supervise banks and insure deposits up to $100.000, that helps maintain a stable and sound banking system.

The Costa Rican insurance program being discussed would be similar in guaranteeing deposits up to $100.000, however, it will be some time before it becomes a reality.

The fire has been put out at BAC San José and confidence in the bank is slowly being restored. However, the flames of can easily rise again and at any of the private banks that leaves depositors at risk, while depositors at the national banks can look to the government for compensation in the event of a complete bank failure.

President Abel Pacheco told the press that police authorities are investigating the source of the rumours and are on the tracks of those responsible, who will be  brought to justice.

For now, many depositors at private banks are nervous. Could their bank be next? Are the national banks their best option? are some of the questions being discussed.

BCR Announces 1% Cash Back for Using Debit Card
The Banco de Costa Rica (BCR), a national bank, in an attempt to lure more customers is the first Costa Rican bank to introduce a cash back credit to customers who use the bank's debit card rather than pay for cash.

The bank announced this week that it will give it's customers a cash back of 1% of all their purchases made using the bank' debit card.

Carlos Fernández, manager at Banco de Costa Rica (BCR) says that it costs the bank $1.25 to cash a cheque or make a cash withdrawl at the counter, while it only costs the bank $0.60 for an ATM withdrawl of electronic transfer using the debit card.

The bank will also begin charging it's customers $1 to cash a cheque if the account balance is less than ¢150.000 colones and $0.45 to withdraw cash.

BCR has a total of 785.000 debit cards in the market and wants it's customers to use their debit cards at retail locations or ATM's rather than visit the branch.

Many employees, both private and public, are paid by their employers by automatic bank deposit.

Exports Increase, in Spite of Intel
The exports of pineapple, cantaloupe, and medical supplies manufactured at free zone industries are saving the day for Costa Rican sales abroad, which suffer a drop in the exports of high-technology products from Intel.

For some economists, if the sales of Intel are accounted for, the overall growth of the economy will be lower this year.

In April, the sales of the corporation in this year's first four months decreased by 10 percent as compared to the same period in 2003, following a downward trend that started late last year.

Inflation Accelerated in July
The index of consumer prices increased 1.30 percent in July, therefore taking the cumulate inflation for the first seven months this year to 7.64 percent.

The increase also changed the rate of inflation for the last 12 months through July to 12.44 percent, as compared to 11.89 percent through June.

This figure surpasses de overall inflation of 11 percent, that the Central Bank had established as a goal for this year.

July's inflation was the highest in the last five months. According to economist Rodrigo Bolaños, inflation at the end of the year might reach 12 percent, above the 11 percent estimated by the Central Bank.

"Colibri" Public Phones Now Easier to Use
Ever tried to use one of ICE's prepaid calling cards at a public telephone? It can be frustrating at best. Well, ICE is now making it easier, by installing optical readers on it's "Colibri" telephones.

The Colibri telephone is now eaier than ever to use. Dial 197, slide the card through the optical reader and the dial the phone number you want to reach.

In the past, the call became very frustrating and complicated for many customers. Many found the long string of numbers confusing and often didn't enter the right numbers and in adequate time.

To complete a call, one had to first dial 197 or 199, then the 13 digit card number and then the final destination number that could be from 7 digits for local calls, up to 13 digits more for international calls.

The Colibri phones are different from the other public telephones in Costa Rica. A Colibri phone can only be used with the "197" and "199" prepaid calling cards. The "chip" cards do not work on this phone, nor is there any place to deposit coins.

Foreigners are often confused by the various public telephone systems. At public telephone stands in downtown San José, customers can choose, however, in outlying areas, you need to know which card goes with which phone or have the correct coins, since the coin operated telephones only accept the silver coloured coins and not the newer gold coloured coin.

Olympics Soccer: Morocco and Costa Rica Tie
Very few spectators turned up in Pankritio Stadium in Heraklion for the encounter between Costa Rica and Morocco, and the desolate atmosphere seemed to have an effect on the players, who never really got going.

The Moroccans will probably be more satisfied with the 0-0 draw, having been reduced to ten men on the hour mark, though will know they could have snatched victory after creating the best openings in the game. With a point each, both sides are still very much in the running for qualification.

The determination of the North Africans was evident even before the kick-off, when they gathered in a circle to listen to goalkeeper Nadir Lamyaghri deliver a rousing pep talk.

The Costa Ricans gradually came to grips with their opponents and went close to opening the scoring in the 18th minute, when Eric Scott tried to latch onto a long ball from the back only for Lamyaghri to surge from his box and make a desperation clearance.

Costa Rica plays Iraq on Sunday and Portugal on the Wednesday.

News Briefs

• The Juan Santamaria international airport was closed for eight hours from 10pm last night to 6am this morning, to allow the returning air traffic controllers to take stock of their stations and get things back to normal. The Dirección General de Aviación Civil, made the announcement following the 46 day strike and advised commercial air carriers through a systme "Natam" of the closure.
   
• he Autoridad Reguladora de los Servicios Públicos (ARESEP), the regulating authority on public services and prices, announced a increase of fares on 48 bus routes. An error by ARESEP confused which bus routes went up in price, while some stayed the same, from a decision made last 14 July. That is all cleared up now and the 48 routes affected will see fares go up by ¢10 colones.