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Monday, January 5, 2004

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- Colombian Jailed
- Costa Rica Grows
- Confused About the New "500"
- 1.200 Plates Confiscated
-
Fidel Castro celebrates 45th
- Colombian top rebel leader
- Peru minister resigns over nepotism
- Fujimori says he will return to Peru
 - US to formally launch handover

 

Colombian Jailed in Death of Journalist
.A Colombian businessman, Jorge Castillo, was taken into custody December 24 on immigration violations, but a judge on Tuesday ordered him to spend a year in preventive jail while officials investigate his role in the 2001 murder of journalist Parmenio Medina.

Journalist Parmenio Medina was fatally shot in his car on July 7, 2001.

Police say Castillo and a man named John Gutierrez were the intermediaries between those who planned the killing and those who carried it out. Gutierrez has been in prison for more than a year.

He recently told police that a priest, Minor de Jesus Calvo, and businessman Omar Chaves ordered the killing. Those two were taken into custody and ordered held for six months.

Both operated Radio Maria, which collected donations from Roman Catholic faithful. Medina reported the two were stealing the donations instead of using the money for social projects.


Costa Rica Grows But Fiscal Deficit Still A Worry
By Mike Godfrey, Tax-News.com, New York

Growth in Costa Rica this year is expected to reach 5.6%, the best performance since 1999. Total exports grew 15% from $4.41 billion in 2002 to $5.19 billion in 2003, including exports from duty-free production zones of $3.08 billion, up 25% on last year.

Chip manufacturer Intel is a major contributor to this good export performance, with a large, state-of-the-art plant which is set to receive a further US$110m of investment after Intel decided to locate production of next-generation chipsets in the country.

"This is a very positive and important decision for Intel Costa Rica that reinforces the plant's strategic importance for the company," said Bill Abraham, General Manager of Intel Costa Rica.

"The plant has shown great discipline in increasing productivity, while at the same time managing to cut costs and maintaining an excellent safety record."

The authorities however worry that the country's development is lop-sided.

"The economy's outcome in 2003 was interesting," said Francisco de Paula Gutiérrez, Central Bank President. "I am satisfied, but not happy. It was a year of significant growth. However, that growth did not distribute itself evenly throughout the different sectors of the economy."

Business leaders argue that the recent wave of economic growth includes only a small fraction of the country's businesses and that most companies - nearly 95% - depend on the local market, which has not showed signs of recovery.

However, a survey conducted by the National Statistics and Census Institute (INEC) reported that Costa Rica's poverty rate dropped 2.1% during the last year to 18.5% - its lowest level in nearly two decades. President Abel Pacheco heralded the results, calling them proof that his campaign against poverty was succeeding.

Inflation remained stable, but unemployment and the fiscal deficit continue to be major sources of concern. General unemployment grew from 6.4% last year to 6.7% this year.

The large fiscal deficit in Costa Rica is fuelling doubts over the country's ability to service its debt. However, austerity measures at public institutions and the Emergency Tax Plan approved by Congress last December helped reduce the deficit from 5.4% of the country's gross domestic product (GDP) last year to 4.3% this year.

Nonetheless international credit rating agencies Moody's and Standard and Poor's lowered the country's ratings in April. The Central Bank's total foreign currency reserves grew during the year, totaling $1.74 billion in November. However, $200 million is needed in January to pay a series of Brady foreign-debt relief bonds.

The government is proposing a Permanent Fiscal Reform Package, which will be debated by Congress early next year. If approved, the plan would increase government revenues and reduce the deficit to 2.65% of GDP. Finance Minister Alberto Dent promises that additional revenue generated by the tax package would be used to reduce the country's growing foreign debt.


Confused About the New "500" Coin? Don't Be
As of Jan. 31, the old 500 colones coin is officially off circulation and has no value, being replaced by the new 500 colones coin that is slighly larger and has the "500" in large lettering for easy identification.

The Central Bank had initially said that the old coin would lose it's value on the 1st of January.

The chance over was due to confusion in that the old coin was close in size to the 100 Colones coin. The old coin had a foto of the Central Bank Building on one side and the Costa Rican crest on the other with the words 500 colones in small lettering, it was easy to confuse for the 100 colones coin.

The Central Bank made the announcement last month and has asked that old coin be dropped from the circulation and be returned to the Central Bank for exchange.

In some shops over the Christmas period the old coin was not bein accepted. In one local bar a sign was visibly posted that the old 500 coins would be accepted under any circumstances.
 


The above bills and coins will all lose their value by March 1, 2004


1.200 Plates Confiscated for Not Having 2004 Marchamo
December 31 was the last day to pay the "marchamo", the right to circulate a vehicle on public roads. However, many leave the annual chore to the last minute or wait until the new year, believing there is a"grace" period.

Transit officials, however, have been busy at work and in the first 4 days of the year have confiscated 1.200 license plates, leaving owners with their cars on the side of the road.

The cost of the marchamo varies from the type, model and year of vehicle. The cost can be as high a US$1.000 Dollars for a late model luxury vehicle.

Lines at local financial offices and INS insurance agents were long in the last few days of the December, as officials reported that more 50% of all vehicles did not have their marchamo paid as of December 22.

Once confiscated, owners of the plate must pay the marchamo and a fine of 15.000 Colones and any costs to have the vehicle towed from it's location.

Many drivers still are under the belief that the "old" custom of a 15 day grace period is given. However, this year, with the recent release of traffic death statistics and the recent passage of seat belt laws, Transit officials are being firm in enforcing the traffic laws.

 

 

Cuban President Fidel Castro salutes 'unprecedented history' on the 45th anniversary of the revolutionary.

Fidel Castro celebrates 45th anniversary of revolutionary triumph
Declaring that together they had written "an unprecedented page of history," Fidel Castro gathered with several thousand members of Cuba's political elite Saturday to celebrate the 45th anniversary of the revolutionary triumph that brought him to power.

Wearing the olive-green dress uniform with gold- and red-trimmed epaulets reserved only for special occasions, Castro addressed the group for about 45 minutes after a concert at the Karl Marx Theater.

Government Cabinet ministers, top Communist Party leaders and members of the mass organizations — such as the Union of Young Communists — supporting the power structure were invited to the event.

Castro, standing on the theater's stage before a carved mahogany podium, told the formally dressed guests that the protagonists of the revolution sought social justice, not fame.

"Our objective never was the search for glory," he said.

Nevertheless, they and their supporters went on to write "an unprecedented page of history," he said.

Castro's speech was broadcast on state-run television and radio.

As the event began, television viewers were shown black-and-white film clips of the early days of the revolution, when Castro was a triumphant 32-year-old rebel commander leading his men into the eastern city of Santiago on Jan. 1, 1959.

Just hours before, then-President Fulgencio Batista fled the island for the Dominican Republic.

Castro, 77, is the world's longest-ruling head of government — the only socialist system in the Western Hemisphere. His leadership over this Caribbean nation of 11.2 million people remains unchallenged.

Castro has ruled during the administrations of 10 different American presidents, successfully defying their attempts to force him to change his socialist system.

While supporters consider Castro the spiritual heir of Cuban independence hero Jose Marti, his detractors criticize him for jailing opponents and stifling dissent.

Saturday's event began with the island's national anthem, followed by a modern dance rendition accompanied by Cuba's National Orchestra.

Also performing were Cuba's National Choir, a children's choir, a Spanish dance troupe and vocalist Omara Portuondo of Buena Vista Social Club fame.


Colombian top rebel leader captured in Ecuador
A senior leader of the leftist Revolutionary Armed Forces of Colombia (FARC), who was captured ina hospital in neighboring Ecuador, was brought to Colombia on Saturday, the military said.

The military identified the detainee as Juvenal Palmera, alias Simon Trinidad, one of the 15 members of the FARC leadership.

Trinidad was arrested late on Friday while he was being treated in the Ecuadorian capital Quito for a flesh-eating insect-borne disease, the Colombian military said.

"The capture of a top FARC official shows that terrorism will never prevail" in Colombia, President Alvaro Uribe said after Trinidad's capture.

Uribe also predicted more setbacks for FARC, which he said would eventually be eradicated in the country.

Trinidad is the highest-ranked member of FARC to be captured in four decades of war with the government. He was one of FARC spokesmen in a failed peace dialogue with the government from January 1999 to February 2002.

On board a Colombian army helicopter from Quito, Trinidad was handed over to Colombian authorities in Colombia's border town of Ipiales.

Colombian Defense Minister Jorge Uribe said Trinidad will face trial for 30 charges that include murder, kidnapping, sedition and terrorism.

FARC is the largest rebel group in Colombia with 17,000 combatants. It is considered as a terrorist organization by the United States, the European Union and several Latin American countries.


Peru minister resigns over nepotism charge
Peru's Labor Minister Jesus Alvarado resigned on Saturday over nepotism charge.

Peruvian President Alejandro Toledo said in a statement that he had accepted Jesus Alvarado's resignation, adding that he is now busily considering a replacement.

Alvarado was under investigation over media allegations that he used his power to get jobs for 15 family members, including his brothers and sons, in state institutions.

Toledo said he would not draw a conclusion until the investigation ends.

Toledo forced Prime Minister Beatriz Merino to resign and reshuffled the government last December. A run of scandals at the end of 2003 battered the government's credibility and knocked Toledo's popularity rating down to just 11 percent.


Fujimori says he will return to Peru in 2006
Disgraced Peruvian ex-President Alberto Fujimori said Saturday he will return to Peru in 2006, calling people to bury the political parties "that are taking the country to an abyss."

"2004 is the year of Fujimorism and for people to take the reins of the future," said Fujimori in a weekly radio speech, which was recorded in Japan and delivered through a Lima station.

In November 2000, Fujimori fled Peru amid a political scandal that toppled his 10-year regime (1990-2000).

Peru's justice department has accused him of homicide and kidnapping, illegal enrichment, human rights violations and embezzlement.

In the radio program, the sacked leader said there is a big popular mobilization to facilitate his return to power, although he is banned from occupying public positions for 10 years.

"We cannot allow those politicians to keep on hurting the country," Fujimori said, calling on his followers "to fight united and find a solution to the collapse of the political system."


US to formally launch handover of power to Iraq
The United States will formally launch the handover of power to Iraq with the final game plan still not fully in place, the Washington Post reported Sunday.

The United States begins the complicated political, economic and security transfer with a general framework and a June 30 deadline for completion set by an agreement reached on Nov. 15 between the US-led Coalition Provisional Authority and the Iraqi Governing Council.

But critical details are still being negotiated between the Iraqis and US administrator Paul Bremer, some of which could determine whether the new Iraqi government is ultimately embraced by the majority of Iraq's 22 million people,

Besides figuring out who will rule the oil-rich country in Saddam Hussein's wake, Iraqis will have to deal with a host of other key questions over the next two months, such as the form of the future government in Iraq, and the role of Islam, and ethnic, tribal or religious groups in the country's political life, the paper noted.

The deadline has been set on Feb. 28 for agreement on these and other basic questions, to be codified in the recently renamed Transition Administration Law, the precursor to a constitution.

The Iraqis will also have to determine in due course their relationship with US troops, and therefore the United States, after the handover of power, The Post said.



 

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