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Latin America Investment News on Viva Tropical

Extortion Closes 1,600 Honduran Companies

Article Summary:

A study conducted in July by the Chamber of Commerce of Honduras shows that extortion has caused 1,600 company closures. As a result of the closures and extortion the economic development of the country is affected, discouraging investment as well as causing significant job losses.

Photo Credit: Prensa Honduras

Original Article Text From Prensa Honduras via Google Translate :

Extortion 1,600 businesses Have Closed in Tegucigalpa

Public safety and legal security are priorities for small and medium businesses in the country. This was revealed by a survey conducted by the CCIT (Chamber of Commerce and Industry of Tegucigalpa), where 94% of respondents rated the uncertainty as to attack the problem by the Government.

3,000 Chamber member companies, 90% of them have been victims of a crime, the first study revealed that this organization made in January.

However, a second study fire statistics to prove that by extortion , 1,600 companies closed operations, leaving employment directly or indirectly to 25,000 Hondurans.

“The study reveals that in July the extortions have caused the closure of business closings. Companies is estimated at 1,600 and this causes layoffs and affects providers and there is damage to the seats that can be generated, “said Mario Bustillo, president of the Chamber of Commerce of Tegucigalpa.

Of the respondents 22% considered that an obstacle to investment in Honduras is violence, and 13% to organized crime. San Pedro Sula planning a study with its affiliates to determine the numbers of companies that are victims of extortion , but said that so far none of the affiliates 1.650 insecurity has closed.

The study
The result is alarming, 1,600 companies mostly from the commercial sector, have been the victim of extortionists who started with small amounts, then increased the amount receivable weekly and after the war tax, demanded payment journal.

“The payment is required daily, starting with little and now are large quantities which required, which makes impossible the operation of enterprises, so they decide to close.

denounce There is much fear and no confidence. People prefer to close and leave the place “, said Bustillo.

Calculations based on the minimum wage shows that these trades injected in wage payments over 107 million monthly lempiras and about 1,500 million a year.

The areas most affected by insecurity are Comayagüela Kennedy colony, colony Sept. 15, the center of the capital, San Miguel and Colony Boulevard Morazán.

The study also reveals that if an employer ceases to invest in Honduras 41% prefer to do in Costa Rica, 23% in Panama, 29% prefer to take their capital to Nicaragua and 12% would go to El Salvador.

Fear
The extortionists operate affects even large companies that take steps to address the criminal actions of these groups. “Not only do we talk about small business, big business extortion will, in many cases managers have had to resign because of death threats to them and their families. Others are going to lie to other cities or leave the country, “Bustillo said. Carrao Victor, executive director of the CCIC (Chamber of Commerce and Industries of Cortes), said that so far none of the companies affiliated to the Chamber has been a closing of extortion, says most closed by the economic crisis.

“We are not aware that any partner or member is removed for extortion. No doubt that there are many businesses in the informal sector have had to close their business for that matter. We are trying to do a study on that particular topic. The atmosphere in the country, is making a lot of investment stop coming to Honduras, there are events that have had to cancel because people will not come to the country, “said Carrao.

Link to Original Article:

From Prensa Honduras

Latin America Investment News on Viva Tropical