Central America

Panama Canal administrators forecast an income of 3 billion balboas in 2021

The Panama Canal authorities presented next year’s revenue estimates. They foresee that by fiscal year 2021 they will earn $3,308.9 million in revenues. While contributions to the National Treasury will be around 1,760.3 million.

Ricaurte Vásquez, administrator of the Panama Canal before the Budget Commission of the National Assembly, said that they consider it “the most favorable and advantageous figures that we have seen in the international trade forecasts, which reflect a reduction of 13% or even 32% at an international level trade.”

Vásquez added that in 2021 there will be around 33 daily transits. This represents a reduction of 11.2%. “This will impact the tonnage that transits the Canal and directly affects the central government’s income in the tonnage rate it charges,” he emphasized.

Central America

Guatemala narrows emergency measures to hardest-hit gang violence areas

The government of Guatemala has narrowed the scope of its state of emergency to the areas most affected by gang violence, Interior Minister Marco Antonio Villeda announced on Thursday.

The measure comes two months after coordinated attacks attributed to the Barrio 18 left 11 police officers dead.

President Bernardo Arévalo initially imposed a state of siege in mid-January following the violence, which was reportedly in retaliation for government intervention in three prisons where gang leaders had staged uprisings.

That measure, which allowed arrests without a warrant, expired after one month. It was then replaced by a less restrictive “state of prevention,” alongside an increased security deployment in Guatemala City and surrounding areas.

According to Villeda, the state of prevention has been extended for two additional weeks but will now apply primarily to the central department of Guatemala — home to the capital — and Escuintla, which have recorded the highest levels of homicides and criminal activity.

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“We need to continue these joint operations between the police and the military to maintain control,” the minister said.

The measure will also remain in effect in border departments including Petén, San Marcos and Huehuetenango, which border Mexico, as well as Izabal, which borders Honduras and Belize, in an effort to prevent the entry of criminal groups linked to drug trafficking.

Villeda added that in the past two weeks, homicides have dropped by 25% and extortion cases by 33% compared to the same period in 2025.

Central America

Costa Rica closes embassy in Cuba, citing human rights concerns

The government of Costa Rica announced on Wednesday the closure of its embassy in Cuba, a move that signals a further deterioration in diplomatic relations between the two nations.

Foreign Minister Arnoldo André confirmed that Costa Rica has also requested the withdrawal of Cuban diplomatic personnel from San José, leaving only consular representation in place.

According to André, the decision is driven by concerns over the worsening human rights situation on the island, including increased repression against citizens and opposition figures.

He also noted that Cuba’s ongoing economic and social crisis—marked by shortages of food, medicine, and basic services—has made the operation of the embassy increasingly difficult.

President Rodrigo Chaves backed the measure, stating that his administration does not recognize the legitimacy of Cuba’s political system.

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In response, the Cuban government rejected the decision, calling it a “unilateral” move taken under pressure from United States.

“Under pressure from the United States, Costa Rica has limited its relations with Cuba to consular matters,” Cuba’s Foreign Ministry said, describing the action as “arbitrary.”

Despite the diplomatic setback, Cuban authorities stated that historical ties between the two nations would endure.

Central America

Costa Rica closes Cuba embassy as president escalates rhetoric

The president of Costa Rica, Rodrigo Chaves, escalated political rhetoric on Wednesday, stating that “the hemisphere must be cleansed of communists,” following his government’s decision to close its embassy in Cuba.

The remarks come as Costa Rica moves to downgrade diplomatic relations with the island, citing a sustained deterioration in human rights. Chaves reiterated that his administration does not recognize the legitimacy of the Cuban government, accusing it of repression and of maintaining poor living conditions for its population.

“We do not recognize the legitimacy of that government. We will not maintain a consulate there; services will be handled from Panama,” Chaves said during a press conference.

The president also argued that the communist model has “failed” not only in Cuba but in every country where it has been implemented, emphasizing that freedom is essential for development.

The decision was made in coordination with president-elect Laura Fernández, who is set to take office on May 8 and is expected to maintain the same foreign policy stance.

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Foreign Minister Arnoldo André confirmed the closure of the embassy in Havana and requested that Cuba withdraw its diplomatic personnel from San José, while maintaining limited consular functions.

Costa Rican authorities justified the move by pointing to increased repression against citizens, activists, and opposition figures, as well as restrictions on fundamental freedoms.

The closure marks a new point of tension in bilateral relations and comes amid growing international pressure on Cuba.