Central America

Salvadoran government plans to allocate $50 million to the informal sector

Juan Pablo Durán, head of the Salvadoran Bank for Development (Bandesal), said they are thinking about allocating $50 million to the informal sector, so that those companies affected by the economic crisis caused by the pandemic, may reactivate their economy.

Durán informed about a $78 million surplus from the subsidy to companies in the formal sector, therefore the plan is to transfer $50 million to the informal sector to meet the institution’s demand.

“We proposed to make this move, because we cannot leave on hold so many Salvadorans who need the resources. In this way, we will continue to look for resources to benefit this struggling sector,” he added.

President Nayib Bukele’s government decided that the remaining $28 million of the surplus be used to benefit the artistic sector, artisans, fishermen and others that the pandemic affected.

“We have no doubt that we are going to support and boost them through subsidies and not through credit, because these are sectors that have been severely affected and they will be the last ones to start working. Up until now, these groups have been affected to a great extent and this cannot continue to happen. Soon we will meet with them,” he added.

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To date, Bandesal has delivered about 32% of the trust that was granted by issuing Treasury Certificates (Cetes) last year.

Central America

U.S. and Guatemala Sign Trade Deal Granting Zero Tariffs to Most Exports

The United States signed a reciprocal trade agreement with Guatemala on Friday, under which 70.4% of Guatemalan exports will enter the U.S. market tariff-free.

Guatemalan President Bernardo Arévalo highlighted the importance of the agreement, stating that it creates a framework of cooperation, certainty, and new opportunities for producers, workers, and entrepreneurs in the country. His remarks were shared in a video published on his official social media channels.

In 2025, 30.3% of Guatemala’s total exports were destined for the United States, amounting to approximately $4.3 billion. As a result, the agreement is expected to directly benefit key sectors of the Guatemalan economy, including agribusiness, manufacturing, and the textile industry.

“Today we have taken another step toward consolidating a country that, when it moves forward united, generates confidence, attracts investment, and creates real development opportunities for all its people,” Arévalo added.

The agreement with Guatemala follows a similar trade deal signed by the United States with El Salvador on Thursday, which includes the elimination of a 10% tariff on Salvadoran imports.

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Central America

Panama Supreme Court Strikes Down Panama Ports Concession as Unconstitutional

Panama’s Supreme Court of Justice has ruled unconstitutional the concession contract granted in 1997 to Panama Ports Company (PPC), a subsidiary of the Chinese conglomerate CK Hutchison, which operates two strategic ports along the interoceanic canal. The decision was announced on Thursday, January 29, 2026, following two lawsuits filed by the Comptroller General’s Office.

The ruling directly affects the management of the ports of Balboa, on the Pacific coast, and Cristóbal, on the Atlantic side, both of which have been operated by the company for nearly three decades. According to Panama’s Comptroller General, Anel Flores, an audit uncovered irregularities in the contract that resulted in more than $1.3 billion failing to enter state coffers.

“It is a predatory contract, abusive to the interests of the country,” Flores stated.

The Supreme Court determined that Law 5 of 1997, its subsequent amendments, and the automatic extension granted in 2021 are unconstitutional. The ruling noted that the contract renewal took place without adequate oversight and amid allegations of corruption, despite the Panamanian state holding only a 10% stake in the company.

Central America

Guatemala President Says Starlink Terminal Found Inside Prison

Guatemalan President Bernardo Arévalo revealed on Tuesday that a Starlink terminal was discovered inside a prison in the country, highlighting corruption and the illegal introduction of advanced communication technology into the penitentiary system.

Arévalo did not specify which prison the device was found in but stressed that Starlink’s ability to connect directly to low-orbit satellites makes it particularly difficult to disrupt, posing a serious security risk.

The disclosure was made during a press conference attended by Interior Minister Marco Antonio Villeda and Defense Minister Henry Sáenz.

On January 6, specialized units of Guatemala’s National Civil Police (PNC), members of the Army and prison security personnel carried out Operation Sentinel at the Renovación 1 Maximum Security Prison for Men, located in Escuintla. According to the Interior Ministry, the operation aimed to reduce criminal activity, prevent illicit acts and stop the trafficking of prohibited items inside the prison.

During the operation, authorities also dismantled businesses operating near several prisons after detecting routers that were allegedly used to redirect internet signals into penitentiary facilities, according to local outlet Emisoras Unidas.

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Tensions escalated further over the weekend of January 17 and 18, when inmates affiliated with gangs staged riots in three prisons. During the unrest, they took prison guards and a psychologist hostage, demanding extra-large beds, air conditioning, transfers to other facilities and access to the internet.