Editorial Note: Now we come to the last of Costa Rica’s seven provinces, Limon. Again this Eastern area of Costa Rica is almost a country unto itself. A totally different culture, flavor, climate, and people, but still it is as open and friendly as the rest of the country. The landscape too is vastly different, with more of a tropical flavor, palms, bananas, and vast Jungles that are akin to the Great Amazons to the South. Limon is different, and is definitely worth a few visits to get a taste for this other side of Costa Rica. We hope you enjoy the small taste we have included in this issue. Next issue we will cover a special topic, so watch for us in November... - Ryan Piercy
Remember, cedula renewals begin now January1st, 2008. call for an appointment.
This magazine has been published every two months for 10 years as the official communications media of the Association of Residents of Costa Rica. Our organization provides service to thousands of foreigners who have chosen Costa Rica to reside for short periods or for permanent residence. Since 1984 the Association of Residents of Costa Rica has been offering reliable SERVICES, INFORMATION and ADVOCACY to Costa Rica’s foreign residents. We have the experience and ability to help you with your residency application, immigration, business and financial management, real estate purchases and rentals, property management, insurance, pet importation and much more. If you wish to place an ad in El Residente, please contact the ARCR main office.
El Residente
2
Presidents Repor t by Earl Tomlinson Trial, trivialization and other things... Well, after reading Bob’s experiences of moving back to Canada it made me think about some of my thoughts about moving to Costa Rica. Living in a different culture is difficult, but I have learned to accept the realities of my move. At our seminars I always talk about the four most important things you must remember if you are going to live here: PATIENCE, PATIENCE, PATIENCE AND ALWAYS CARRY AN UMBRELLA! This has kept my type A personality in check except when I travel to the United States. It’s great to travel the freeways of California, and release all the pentup emotions with hollering and ranting. I’m not talking road rage just a cathartic cleansing of ones pent-up frustrations, and unfortunately I tend to take some of my feelings out on the people and problems I encounter in the States. There are several Laws of Life that pertain here: 1. The probability of being watched is directly proportional to the stupidity of your act; 2. Anything is possible if you don’t know what you are talking about, and finally Oliver’s law, which states, “A close mouth gathers no feet.” Enough of my foibles! The ARCR Board is close to setting a date for next years fair. This year it was held in Sabana Park near the Art Museum. We are looking at a site in Escazu or downtown San Jose. San Jose will be inaugurating a new walkway and we may try to hitch hike on their opening event.
Cariari Hotel. This will be our first year to host the event so I hope we will see a plethora of members in attendance. I would be remiss in not mentioning the Canadian Club and Alan Weeks as they were the driving force in hosting the event in past years, and of course we need their support to make this year’s event successful. Terry Renfer, Vice-President of our Board, is in charge of arranging the event so if you would like to help or volunteer please contact Terry at ARCR. We just completed our July raffle and all the prizewinners have been notified. This raffle is held every three months, and there are many prizes i.e. necklace, wine, painting, Chris Howard’s new book, free medical exam and a oneday trip sponsored by the Travel Store. Tickets are only 1,000 colones, and they can be purchased from any staff member at ARCR. All the proceeds go into our charity fund and our staff has a list of the organizations that we have helped. We are adding an “early bird drawing,” which will be held every Friday morning at ARCR, from all raffle tickets sold that week. Win or lose, all tickets sold will also be part of our quarterly drawing. You may also buy the weekly prize at a price to be announced in our posters at ARCR. So what is the prize for the weekly early bird drawing? A ticket for two on the new Canopy Urbano { La Sabana Park}. You will, therefore, have two ways to acquire tickets; buy some raffle tickets for the Friday drawing or only buy the canopy ticket. Remember
The Christmas dinner/dance is set for December 8th at the
Continued on page 4...
Cover Collage Province 7-Limon: Province number 7, Limon, may be the last in sequence, but in reality it was the first discovered by Colon when he landed near its now Capital City in 1502. Limon extends the entire length of the countries Caribbean coast, so it is not surprising that when mentioned one pictures its low lands and coastal beaches. Yet its southern portion also encompases mountain ranges, including the tallest of Costa Rica’s Peaks, Mt. Chirripó, at 3820 meters. The climate is distinct from the other provinces, due to the Caribbean, and is almost the reverse of the rest of the country, and no specific dry season. Like can be said of the culture. Due to its histrory and remoteness from the rest of the country, its people are more of the Caribbean than Costa Rica, from food to dance, it is perhaps the most Tropical part of the entire country.
September-October, 2007
3
the raffle ticket winner, as well as all raffle tickets sold, will have their tickets placed in the quarter end drawing. The price of the ticket will be posted in our flyers at ARCR Again all funds received go into our charity account. I mentioned our month end seminar earlier, and I don’t know how many of you have taken advantage of this or might be interested in attending this two day event. The topics include; buying real estate, setting up a corporation, shipping household goods to Costa Rica, medical/household/auto insurance {INC}, private medical insurance, CCSS medical insurance, US tax law pertaining to Expats, banking in C.R., communications, obtaining residency and general information about experiences of living in Costa Rica. The price for ARCR members is $25.00 each, and it includes lunches and morning snacks. We have many repeat attendees as well as tourist who are contemplating a move to Costa Rica. I mention this because many members don’t realize we offer this service. If you are interested in attending please contact Anabelle at ARCR. Thank you for taking the time to read this and I look forward to talking with you the next time you stop by ARCR.
Association of Residents of Costa Rica ARCR CHARITY RAFFLES We are continuing to raise funds with our ongoing charity raffles, and need your collaboration. Tickets are just ¢1000 offering prizes worth hundreds of dollars. Please assist by purchasing one, or if you can help us sell, we are always in need of assistance. SPECIAL EARLY BIRD DRAWS Over the next 3 months, we will be raffling several prizes to enjoy the CANOPY TOUR in the SABANA PARK, with many, many thanks to Green Mountain Tours (Tel: 215-2544). We are certain any of our members would enjoy the ride, even if you get a little wet..... The earlier you buy your raffles, the more chance you will have to win. website: www.arcr.net ANNUAL CHRISTMAS DINNER Watch for full details on this years Dinner Dance in the next issue of El Residente. This years event will be held at the hotel Cariari, in the same salon as last year. The price will be around $30/ person, and the date has been set for December 8th. Tickets should be on sale by November 1st at the ARCR offices. Buy early as seating will be LIMITED!
- Earl Tomlinson
El Residente
4
Alcoholics Anonymous Groups meet daily throughout the country; times and places change frequently. Call for up-to-date information. San José 222-1880 (Anchor club, also serves Narcotics Anonymous) Av 6 Calle 1, 2nd floor Maryland Building. Heredia (Laura) 267-7466, Puerto Viejo Limon 750-0080, Zancudo 776-0012, Tamarindo 653-0897, Flamingo (Don) 654-4902, Manuel Antonio (Jennifer) 777-1548, Jacó (Nancy) 637-8824, Zoo Group Escazu 293-4322. Al-Anon Meetings Al-Anon Family Group is for all family and friends of Alcoholics. For information in English, please call Martha 483-1275 or Sandy 266-1061; For Spanish please call Christine 840-4658 American Legion Post 16 All veterans are welcome. Meetings are the second Tuesday of the month at Hotel America in Heredia. Contact Post Commander Jim Young or Post Adjutant Ken Johnson at 591-1695. Bird Watching Club The Birding Club of Costa Rica sponsors monthly trips to observe local and migrant birds in various areas of the country. For more information contact us at 282-5365 or at costaricabirdin g@hotmail.com Canadian Club (ACCR) A group open to all Canadians and thier families. Check out our website to find out more. website: www.canadianclubcr.com Democrats Abroad Democrats Abroad meets on the last Saturday of every month at the Aurola Holiday Inn, San Jose. Contact Paul Kloes, 228-8260, e-mail cr.democratsabroad@yahoo.com or visit our website at cr.democratsabroad.org. Register to vote absentee at VoteFromAbroad.org! Little Theatre Group LTG is the oldest continuously running English-language theatre in Central or South America. The group currently puts on a minimum of four productions a year offering a choice of modern, classic, serious, and farcical plays. Continuing in the tradition of its founders, LTG regularly donates to charity, sponsors school drama festivals, trains new directors, and takes productions on the road to the more remote areas of the country. The group’s monthly social meetings are held in the theatre on the first Monday of the month from 7p.m. to 9 p.m. and everyone is welcome. Membership costs C 4,000 per person or C7, 000 per family. Also, earn your Wings, become an LTG Angel. For more information Call the LTG Box Office 355-1623 or www.littletheatr egroup.org Newcomer’s Club A women’s social organization that meets the 1st Tuesday of each month. We welcome English speaking women who reside in Costa Rica. New and long term residents-contact Nancy 4166165 or newcomerscr@yahoo.com PC Club of Costa Rica This computer Club meets on the third Saturday of each month at Pan American school, in Belen, 830 to 11:30 am 2 months Free Trial for newcomers. For information call Chuck Jennings. Phone 266-0123 www.pcclub.net
September-October, 2007
Send us your club news or activities for free publication in this column
Republican’s Abroad The Republicans Abroad of Costa Rica meets the second Tuesday of each month. Contact Francis 203-6131, or or fax 282-2150. Radio control Sailing Club Meets at Sabana Park Lake. For information contact Walter Bibb. Wwbbsurf40@yahoo.com Tambor Gringos and Important Friends T.G.I.F. T.G.I.F. is a small social club open to those who speak English, including Costa Ricans, in and around the town of Tambor on the Nicoya Peninsula. Members meet at 9:00 a.m. the first Friday of every month at the Beachcomber Bar and Grill in Tambor. The meetings are very casual and provide a forum for exchanging ideas about life in Costa Rica. For more information contact rzldzll@earthlink.net Wine Club of Costa Rica Please mark your calendars The wine club usually meets at 1 P.M. on the last Sunday of each month. Join us to tantalize your taste buds and expand your education. For more information on upcoming events please contact us Phone 279-8927, 257-2223 Women’s Club of Costa Rica Founded in 1940. The Women’s Club of Costa Rica is one of the oldest, continuously operating service clubs in the country. The name has changed in 63 years, but our motto “friendship and service” has remained the same,. An English-speaking organization, our club has approximately 350 members, originating from over 30 countries. Please join and help us to continue to grow. Remember that you can contact us or keep in touch through our website www.wccr.org Women’s International League for Peace and Freedom (open to men too) Bilingual group meets in Heredia on the first Wednesday of the month at 10 a.m. in the clinic of Mireya Gonzalez. We work on peace and human rights issues. Call Mitzi 433-7078 or write peacewomen@gmail.com Young Expats of Costa Rica Some Expatriates under the age of 40, and currently living in Costa Rica, have formed a new social club to be coordinated through their website This club will help younger expatriates living in, or moving to, Costa Rica meet other expats in their age group for; friendship, romance, travel and activity partners, and professional networking. www.YoungExpatsOfCostaRica.org Veterans of Foreign Wars: Post 11207 Meetings are held at 11am, the first Tuesday of every month, at Club Colonial Casino on the second floor. All members are welcome and veterans who served overseas may join. For further information please call 750-0453 or 228-2313.
5
Provincial Park ks
and the giant leatherback. They arrive all year long, but nesting season is best mid-June to mid-October and the months of August and September, the busiest months.
by Ana Hernandez
The Village of TortugueroA Tiny Lost Civilization If the enchantment and the vastness of the Tortuguero canals and its wilderness have been compared to the Amazon River but in a smaller scale, then the little village of Tortuguero in the Province of Limón, as remote and elusive as it is, seems like a tiny lost civilization, hidden from the rest of us. Visitors to the Tortugero Canals can enter these large waterways through two locations. Navigating the Río Sarapiquí from Puerto Viejo, Sarapiquí, is the longer way, and the more direct one is through the public docks of the Port of Moín in Limón, by boat. Both ways offer the unforgettable experience of smooth sailing on a clear surface of water, the wind against your hair while water birds and other critters flash here and there, leaving all worries to the local boatman who expertly enters this intricate maze of canals connected among them like a giant aquatic spider web. About three hours later from Moín, the boat finally reaches the extensive region known as Tortuguero. Turtles have been coming to these lands for several centuries now, therefore the name Tortuguero, which means the land of turtles (tortugas.) The area has been in extreme isolation with no dirt or jungle roads leading into what is now one of the most ecological important places on Earth: the Tortuguero National Park.
The Village of Tortuguero lies on an islet surrounded by the Atlantic Ocean on one side and the ample main canal on the other. The narrow land is no more than 300 meters wide at most points¸ connected by dirt and gravel footpaths where automobiles are not needed and near impossible to be brought into the island, anyhow. Several old wood frame houses are organized in rows in front of cement sidewalks and dirt footpaths. All dirt paths, covered with litter, eventually lead to main locations such as to the decaying school and its soccer field and to the small general stores (pulperías) with goods brought in from Limón. There are a few souvenir shops on the center of town and at either edge of the village, locals run a few lodges and sell food to hungry sightseers. This tiny isolated dwelling may not only seem like a lost civilization, it is also clear that progress has not rooted here. There are hundreds of organizations working for the protection of turtles in Costa Rica, but the real caretakers of turtles are the inhabitants of Tortuguero. There was a time when most of the families living in nearby hamlets captured turtles and harvested their eggs to sell in local restaurants for a profit or for their own consumption. Nowadays, locals have come to the realization that the real profit lays in the protection of these marine species that depend on their help to survive and not become extinct.
This national park was established in 1970 primarily for the protection of all turtle species that nest here and to avoid the poaching of eggs and the killing of adult turtles for their meat and shells. Four different species of sea turtles travel long distances across the sea to lay their eggs on the wet sands and secluded beaches along the park: the green turtle (most commonly seen in the area,) the hawksbill, the loggerhead,
El Residente
6
September-October, 2007
7
Insurance in Costa Rica
Important: If you have an excellent payment history, after four semester payments, INS will give you a 5% discount on your fifth semester, until reaching a total of 40%. If you already have this policy with another INS agency and you decide to transfer with us, your payment history or discounts obtained up to this point with others will not be affected.
by Juan Carlos Calero
An Overview of Policies CC Group has available for associates, tenants and the general public the policies of the National Insurance Institute which can be obtained by companies and individuals. We guarantee our clients the following: Policy payment reminders, messenger service, claims’ updates and a personalized attention, to save you valuable time and lots of difficult paper work. Here are some of the many INS policies we have available:
2. INS Medical Insurance International and Regional Plans With either of these plans, our clients will obtain the best medical attention anywhere in the world with the most competitive prices in the market. Both are sold in U.S. dollars. Regional Plan: Under this plan you will obtain coverage up to US $200,000 annually in Costa Rica and Central America. International Plan: Under this plan you will obtain coverage up to US $ 2 million annually anywhere in the world. Main Coverage:
1. Optional Auto Insurance This insurance covers civil liability (damage to third parties) and direct damage as well. It covers medical expenses for the policyholder and family when victims of car accidents.
• • • • •
Hospital and outpatient treatment expenses Maternity Oncology and Infectious diseases. Congenital diseases in the newborn, prosthetics and organ transplants. Newborn premature conditions
Additional coverage: Civil Liability Coverage (A&C) Coverage A: Civil Liability (extra-contractual and subjective) for injury or death of people. Coverage C: Civil Liability (extra-contractual and subjective) for damage to the property of third parties. Coverage B: Family medical expenses Direct Damage Coverage (D, F & H) Coverage D: Collision and/or Roll Over Coverage F: Vehicle theft and auto break in Coverage H: Additional Risks Coverage G: Travel Assistance
• • • • •
Accidents occurred while diving or playing soccer. Labor related accidents or diseases. Ophthalmologist check up Ambulatory expenses for accident General check ups
Other Benefits: • •
Transportation by air-ambulance for evacuation. Repatriation for medical reasons y repatriation of Continued on page 9...
El Residente
8
• • • •
body. allowing optional policies such as: Prolonged stay overseas for accident or illness. Burial Services Personal accidents Death Risks at Work insurance for maids and seasonal Release of insurance payment for death of workers policyholder. This policy is available for homes built in concrete in good condition and with adequate maintenance Policies: Coverage V: Direct damage to buildings Coverage Y: Direct damage to contents Optional Coverage: Civil Liability Risks at work Personal Accidents We also offer Student Insurance, Travelers’ Insurance with Assistance, Life Insurance; among several.
3. Total Home Insurance
Casa Canada Group has a large portfolio of satisfied clients. We guarantee the service you deserve!
The total Home Insurance (Hogar Comprensivo) is a type For information on the products we offer or if you wish to of insurance that offers a unique “package” of coverage obtain INS insurance with us or to switch please contact us for homeowners offering protection for the residency and at the ARCR offices.
September-October, 2007
9
Wild Side
Frog Flies are another danger, as these predators lay their eggs amongst the frogs, where the developing larvae become parasitic, destroying the tadpoles.
XX XXIX X
by Ryan Piercy
Crystal Frogs No, I am not suggesting you spend your next Ecotour at a tourist shop, nor a jewelers or glass blowers. In fact, it was while looking over details of Tortuguero, in Limon Province, that I first stumbled across the existence of Rana’s de cristal, or Glass Frogs. These amazing little amphibians are actually transparent, enough that you can actually see their internal organs, and they even disappear if a light is shined on them. I found it interesting that Poison Dart frogs are often mentioned, but not so frequently the Glass Frogs. These are members of the family Centrolenidae, and in Central America they can be found from Panama to Southern Mexico. Costa Rica is home to 13 species of this frog, some of which are endangered. Many amphibians currently appear at greatest risk from the effect of Global Warming. And of course pollution is always a factor that affects many species.
While these Glass Frogs have been known for some time (since the 1800’s) it is only in recent times that many of the species have been discovered and classified. In fact there is still great controversy over their classification as a family group. While traditionally considered to be closest to Tree Frogs, current indications show that Leptodactylidae may in fact be the closest relative. Continued studies may be a race against time however, as the world situation continues to have devastating effects on the Frogs and their amphibious relatives. So, if you happen to be in Tortuguero, or another area of habitat for these precious and fragile creatures, keep a careful watch in order to enjoy sighting them. Hopefully Gift Shops won’t become the only place they are actually found in the near future.
Glass frogs primarily have a lime-green coloration, and the skin is quite translucent, allowing one to see the heart, liver and digestive tract. Many are also spotted, and internals often appear yellowish in color. When seen, often they are mistaken for Tree Frogs, which are also found commonly in the same areas. They are also mostly arboreal, living high in trees near rivers and streams. Many of the species are quite small, about 20-30 mm long, which also accounts for the difficulty in observing them. They have a high peeping call, or whistle, and lay their eggs in batches, usually on a leave overhanging the water. This allows for the hatching tadpoles to fall into the water below,
where they generally swim down and burrow into the streambed.
Species of Glass Frogs in Costa Rica Scientific Name
Common Name(s)
1 2 3 4 5 6
Centrolene ilex Centrolene prosoblepon Cochranella albomaculata Cochranella euknemos Cochranella granulosa Cochranella spinosa
RANITA RANITA RANITA RANITA RANITA
7 8 9 10 11
Hyalinobatrachium chirripoi Hyalinobatrachium colymbiphyllum Hyalinobatrachium fleischmanni Hyalinobatrachium pulveratum Hyalinobatrachium talamancae
RANITA DE CRISTAL (S) RANITA DE CRISTAL (S) FLEISCHMANN’S GLASS FROG (E) RANITA DE CRISTAL (S)
DE DE DE DE DE
CRISTAL CRISTAL CRISTAL CRISTAL CRISTAL
Red List Status (S) (S) (S) (S) (S)
12 Hyalinobatrachium valerioi 13 Hyalinobatrachium vireovittatum
El Residente
Least Least Least Least Least Least
Concern Concern Concern Concern Concern Concern
Near Threatened Least Concern Least Concern Least Concern Data Deficient Least Concern
RANITA DE CRISTAL (S)
Near Threatened
10
Learning The Language e by Christopher Howard
Calendar Phrases Once you master the numbers through to thirty-one in Spanish, you are ready to learn all of the phrases that have to do with the calendar or el calendario. Start by memorizing the days of the week: lunes – Monday; martes – Tuesday; miércoles – Wednesday; jueves – Thursday; viernes – Friday; sabado – Saturday; domingo – Sunday. Note that if you put ‘el’ before any of the Spanish days you are saying the equivalent of ‘on’, el lunes = on Monday, etc. Next, learn the months: enero- January; febrero- February; marzo- March; abril- April; mayo- May; junio- June; julio- July; agosto- August; setiembre- September; octubre- October; noviembre- November; diciembre- December. Note that in Spanish the days and the months are NOT capitalized. In Spanish “¿Cual es la fecha?” means, “What is the date?” Remember to say the date you have to reverse the month and day: June 3rd is el tres de julio, May 14th is el catorce de mayo. The first day of a month is always el primero de {enero}{etc}. Here are some other calendar expressions and essential words: El día El mes La fecha La semana El año Ayer Anteayer
day month date week year yesterday day before yesterday
mañana pasado mañana de hoy en dos semanas ¿Qué día es hoy? ¿Qué día es mañana? ¿Qué día fue ayer? ¿Qué día es pasado mañana?
tomorrow day after tomorrow two weeks from today What day is today? What day is tomorrow? What day was it yesterday? What is the day after tomorrow?
Here is your Costa Rican expression or tiquismo for this week: “jarana” is a debt in Costa Rican slang. The correct Spanish word is deuda.
September-October, 2007
11
El Res sid idente ente en te Residente
12
!!ALERT!! INTERNET BANKING DANGERS! Some of you may have seen the recent arrest made by OIJ in relation to a series of internet banking scams. BE ALERT! There are professionals who know how to use various methods to obtain your private banking information and passwords, by use of false emails, or special programs. Hundreds of locals, and even a few ARCR members, have already fallen prey. We recomend you to NOT use an Internet Cafe to access your bank, and DO NOT respond to any emails “from your bank” ALWAYS access the Bank Website directly by typing in the correct address in your browser. There are several websites and publishings available on the subject, known as PHISHING, and if you bank online (or use any other confidential services) you should be aware of how you can priotect yourself. Don’t Become THe Next Victim. - A Public Service of ARCR
We
are an experienced team of independent, registered, financial professionals. review & report regularly on changing global conditions to keep abreast of problems & opportunities. select, recommend, and invest ourselves in diversified, well-managed, international value funds, with the best holdings for the future. are well-established with some of the best money managers around the globe. avoid funds & markets showing signs of “irrational exuberance”. adhere to a code of professional ethics & practices. work to earn the trust of each client & remain cognizant of the need to preserve capital.
Our
sound advice is best-suited to expatriate investors wanting good long-term results, not excuses. success is measured by how well we have provided client satisfaction with peace of mind. funds are protected by custodians & remain under client control.
GGGGGGG
G
Author of Dollars & Sense articles published in the El Residente magazine.
I.M.C. Consultants
Broker Advisors, Licensed & Regulated
September-October, 2007
Contact Alan Weeks by e- mail:
imccr2002@yahoo.com
13
Limon by Ana Hernandez
Gate to the Caribbean and A Pure Soul I am a lucky person. I live not too far from the Zurquí toll way, which is part of Highway 32 to Limón, one of my favorite provinces. Soon after paying the fare for usage of this northeast bound highway, one goes through a long, narrow tunnel that leaks water right out of the earth. Right after coming out of the darkness, the sun bathed Braulio Carrillo green peaks greet the eyes again while the road snakes for a while through the breathtaking mountain pass.
About 5 kilometers before the entrance to the town of Guápiles, there is the turn off point to Río Frío on the left. 30 kilometers north from Río Frío is Puerto Viejo in the Sarapiquí Valley. Riverboats can be hired in Puerto Viejo to navigate the Sarapiquí River for an incredible excursion filled with beautiful sights of water birds and abundant wildlife. Caribbean locations Barra del Colorado Wildlife Refuge and the Tortuguero Canals can also be reached through the Sarapiquí River. Guápiles is left behind now and Hwy 32 continues to Limón. A few kilometers later in Guácimo de Pococí, the entrance to the campus of EARTH University comes along. The university is well known internationally as a leading research facility and studies on the Wet Tropical Region. In addition to its extensive research on tropical agricultural crops, students at this university work on Earth friendly projects such as recycling, the manufacture of paper from different natural fibers and the elaboration of organic products.
The view of the mountains leading to the town of Guápiles and the Caribbean lowlands is imposing. The thick, green vegetation of ancient gunnera leaves -some of them about 6 feet in diameter- and the canopies of trees are almost always shrouded by a heavy mist. During the rainy season, persistent rains and erosion prone mountain bluffs, makes Hwy 32 a most dangerous road, where mudslides, trees and rocks, frequently block the passing of traffic.
The Limón Highway now is a long, narrow road with few farms and houses on each side and lots of kids and farm workers on bicycles sharing the same road with fast moving cars and trucks, even after dusk. The nice drive from San José has taken about 160 kilometers and only about 3 hours before reaching the City of Limón.
The road passes through Quebrada Gonzalez Park Ranger Station, the main entrance to Braulio Carrillo National Park, and just a few kilometers further, through the 1.3 kilometers stretch of jungle used by the Rainforest Aerial Tram, a system of cable cars that offer tours above the tree canopies and fantastic views of the vegetation down below. Temperatures climb after descending the mountains, and the land gets flat. The views now are of the extensive agricultural fincas destined to pineapples and ornamental flowers. These crops, just like bananas, the region’s main product, are grown for overseas exportation. Continued on page 15...
El Residente
14
The long boat journey on the canals ends after several hours on the Village of Tortuguero, tucked away between jungle and sea. The inhabitants of this little island live isolated lives, with no automobiles, only few conveniences and trees, sky and water as their tireless companions. Continuing north on the same waterways the 92,000-hectare Barra del Colorado Wildlife Refuge, which borders with Nicaragua, can also be reached. If wildlife adventure leaves room for cultural immersion, then downton Lim贸n is definitely the place to explore. The City of Continued on page 16...
Travelers seeking wilder adventures can head toward the Port of Mo铆n in Lim贸n. From here, boats journey to the Tortuguero Canals and the Barra del Colorado Wildlife Refuge. Tortuguero is a majestic waterway with natural and man-made canals connecting several routes that lead to poor hamlets located right alongside the coast. The canals are the only means of transportation for the inhabitants of these jungle hamlets; they seem to stretch forever among mangroves and lush tropical vegetation and are home to turtles, caimans and crocodiles, water birds and monkeys living atop the trees.
September-October, 2007
15
Limón is the provincial capital of the province of the same name. Seductive rhythms of Saca, Calypso and Reggae; the smell of good cooking emanating from eateries and the fast moving hips of carnival dancers in revealing and colorful attires, awake happy feelings in visitors. Most definitely, Limón is an interesting combination of good vibrations filled with pure soul. Many of Limón’s descendants came from Jamaica to work on the San José-Limón Atlantic Railroad in the late 1800s and brought with them their traditions, religion and foods. Nowadays, is easy to spot the local youth sporting a Rasta style, wearing Bob Marley bandanas and t-shirts and beaded dreadlocks on their long hair in recognition of their ancestry. Many families of Jamaican descendants speak Costa Rica, how clairvoyant he seems in retrospect. a mix of Creole English called Patúa, the familiar form of communicating among then but they have an excellent There are dozens of paradisiacal beaches to visit in Limón. command of the Spanish language as well. Just a short ride by car or taxi from downtown, there is Playa Bonita, an excellent beach to soak in the sun and do a bit of surfing. There is an open-air bar and restaurant with ample parking at this location for eating, drinking and relaxing while looking out to sea. Wilder adventures awaits visitors to Limón wanting to soak in the sun or hit the best local beaches for some serious surfing: Cahuita, known for its black sand beach, is about 43 kilometers south of Limón, followed a few kilometers down a bumpy road by Puerto Viejo and Gandoca-Manzanillo area, the furthermost southern point in the region. Puerto Viejo and Manzanillo, are not just beautiful towns filled with Caribbean charm but have some of the best surfing waves in the country. The Talamanca hills are to the west with long jungle trails that lead to the homes of the Bribri and Cabecar, the Indigenous In addition to the thousands of dwellers of the Central Valley inhabitants of this isolated mountainous area. who live in Limón, the city has its share of several different nationalities as well: folks who came during the railroad There is something terribly romantic about this whole construction and stayed. Among them, there are several Caribbean region that few visitors can resist. Perhaps is citizens of Chinese and European ancestry. There is no lack the feeling of the sun on the skin; perhaps is the peace of of Chinese restaurants and other culinary delights offered spirit brought by the hot ocean breeze; perhaps is the laidin local restaurants, but the true specialty of Limón and its back attitude of the natives or the chords of happy music, or vicinity, is Rice and Beans prepared with coconut oil. Other perhaps is the feeling that all worries are left behind while goodies to try as small pastries called Patí, filled with meat and mild hot sauce, Rondó, an exquisite fish dish, and Pan having the certainty of having found a bit of paradise. Bon, sweet bread spiced with licorice seed and ground cinnamon. Not to miss in the city is the small lookout area along the sea wall pointing toward the vast Caribbean Ocean from where elegant cruise ships can be seen dropping anchors or loaded up with passengers leaving Limón with warm memories of this exotic land. From the lookout point, visitors can see, photograph or go to tiny Uvita Island by boat. This tiny island was visited by Christopher Columbus upon his arrival in this country on his fourth and last voyage in 1502. Believing that the territory was full of material riches, he named our country
El Residente
16
September-October, 2007
17
El Residente
18
A Day In Th he Life by Allen Dickinson
Banking in Costa Rica- P.1 The following is information about handling your money while in Costa Rican. It is not all encompassing, but can give you the basic flavor of what you should do before departing - and what you will be facing when you arrive in Costa Rica. BANKING IN COSTA RICA:. Banco Nacional, Bank of San Jose, Bank of Costa Rica, and others, have similarly named offices and websites in the USA. Those offices, however, belong to different corporations - the US banks have no direct relationship to the banks in Costa Rica even though they share the same corporate name. (They do that to limit liability.) So do not expect to use the US branch of a bank that is also in Costa Rica to have a simple conduit for your money flowing between countries. It does not work that way. There are also private banks that have a worldwide presence, including in Costa Rica - Scotia Bank, a huge international, Canadian based, bank company, comes to mind. So even though you may see the same logo at home as they use in Costa Rica, don’t be fooled - there is no connection. They too are separate entities.
have the funds become available to you. Private banks, on the other hand, have different rules and can make your funds available in as little as 14 CALENDAR days. That can be a huge difference! Opening a bank account at any Costa Rican bank requires, under strict interpretation of the law, that you are a resident or applying for residency. The ARCR can assist you in this matter. Opening an account, be it with a national or private bank, is a much different process in Costa Rica than the one used by US banks. To begin with, they will ask for much more documentation and information than you have ever been asked to provide to any US bank. This will include a Letter of Reference and/or a Commercial Reference letter. These can be obtained from any US bank where you have an account, upon request. It is advisable for you to obtain these letters before departing. Your new Costa Rican bank will require that you show them your original passport, of which they will make a copy. Recent changes to Costa Rican law requires only a copy of the passport for other transactions, but for banking, the original must be presented. They will also want to see a copy of a recent US bank statement from the same bank that issued you a reference letter. Sometimes a credit card statement can be used in lieu, if your checking or savings account data is tied into you credit card. Lastly, they will want for you to provide at least one LOCAL utility (water, telephone, electric, etc.) bill in your name. This is to establish that you are residing in the country. It can be difficult to acquire one of these in your name and sometimes the ARCR can assist you in getting one that can be used.During the application process there will be many questions about financial issues for which the relationship and importance to establishing a bank account will escape your understanding. (Such as your annual income and a local reference.) However, be prepared to answer these questions truthfully and accept that the interviewer is only asking them because they are required by Costa Rican law to obtain the data.
Nationally Chartered Costa Rican banks must operate under Costa Rican international banking regulations. Private banks can have different rules. That can mean, for example, that if you deposit an international check, including a certified funds check, or a cashiers check, or any check that is drawn on a US account or anywhere else outside of Costa Rican, into a national bank account, it would, under Costa Rican banking law, take at least 30 WORKING days to clear the check and
September-October, 2007
ACCOUNTS: You may want to open two accounts - one savings and one checking. One in Dollars, the other in Colones. If you do, you might consider opening one in a national bank and one in a private bank. That is because, though private banks frequently pay better interest, national banks traditionally have more locations around the country, though that is changing. CHECKING ACCOUNTS: The bank will be happy to create a checking account for you. Make sure this account is also Continued on page 20...
19
the balance is a bit more awkward to maintain - for your checking account. Debit cards are very common in Costa Rica and accepted nearly everywhere without hassle. Also, check with your bank and ask for an international debit card, in case you might ever want to make a purchase in another country. CREDIT CARDS: Costa Rican banks issue credit cards just like the North American banks do. To obtain one, check with the bank where you chose to maintain your account. The same applies to credit cards as does to debit cards - make sure it is an international card, in case you want to make a purchase in another country or through the Internet.
the dollars account. Paying by check, however, is not a common local behavior - it is unusual to see anyone in Costa Rican writing a check. Further, the banks here charge significant fees for processing checks. A wiser choice is to consider a debit card for this account. DEBIT CARDS: The bank will be happy to issue you a debit card - which operates like a paper check except
El Residente
It might be a good idea to consider retaining and maintaining at least one or two of your US bank credit cards accounts. They can be an important aid in making online purchases without problems - which can be especially handy if you need to make an unscheduled trip back to the US. However, make sure the issuing bank is aware that you are outside of the country. Allen Dickinson is a member of ARCR. After serving 23 years in the US Navy he settled in Pensacola, Florida, and owns his own licensed mortgage broker business there. He holds a Bachelors Degree from the University of the State of New York and a Masters Degree from the University of West Florida. He will soon be retiring and moving to Costa Rica. He can be reached at; humphree@bellsouth.net
20
CALL TODAY! (506)
672-1181
www.FirstRealtyCR.com
September-October, 2007
21
El Residente
22
A Journey Past by Ryan Piercy
First Landing “I reached the land of Cariay, where I stopped to repair my vessels and take in provisions, as well as to afford relaxation to the men, who had become very weak. I myself (who, as I said before, had been several times at the point of death) gained information respecting the gold mines of which I was in search, in the province of Ciamba; and two Indians conducted me to Carambaru, where the people (who go naked) wear golden mirrors round their necks, which they will neither sell, give, nor part with for any consideration. They named to me many places on the seacoast where there were both gold and mines.” - Christopher Columbus It is no wonder then that Columbus (Colon) determined that he had encountered the source of wealth he searched for, as he journeyed southwards in 1502, on his fourth and final voyage. One of his stops was right in front of present day Limon, at Isla Uvita. The great navigator found his way here around September of that year, where natives along the coast had come out to greet them in their canoes. The Spaniards were gifted with gold, and evidently the aboriginals alluded to the locations of many mines nearby. It is amazing to think that when Columbus landed, there were possibly as many as 400,000 natives, amongst more than 8 different ethnic groups, living in the area. Being the land bridge of the north and south continents, some were greatly influenced in language and culture by the Mayans and Aztecs to the North, while the southern tribes showed signs of South American influence.
September-October, 2007
Unfortunately these numbers couldn’t hold with the onslaught of the Spanish. The number had dropped to 120,000 by the time the Spaniards had a foothold in 1569, and by 1611 barely 10,000 indigenous people were remaining. The methods and practices of various explorers become almost evident, in light of Columbus’ almost warm welcome, which with later arrivals became a cold and hostile environment. So dangerous in fact that Costa Rica was actually settled on the West side first, after several failed attempts to colonize in the East. Of course the destiny of the East Coast was greatly affected by this situation. Even long after colonization occurred, this region was still effectively cut off from the Central and Western areas, as there was no easy access until the Railway was built, with the mountainous and inhospitable terrain of Costa Rica mentioned frequently in documentation. In the end many of the final settlers and slaves came from Jamaica, the very same islands that Columbus himself was stranded on for nearly a year at the end of his Fourth voyage, following his encounters in Costa Rica and neighboring territories. Columbus himself spent some days at the Island, which was intended to give the ill crew some much-needed rest, however his stay in the area led to the encounters with the natives and their stories of gold mines. As I have said before, though Costa Rica did not in the end have the gold and riches that Columbus expected, it is ironic that when he discovered the ‘Rich Coast’ it would turn out to hold so much wealth in terms of the flora and fauna, and the culture, that we know today.
23
Dollars & $en nse by Alan Weeks
The Fall of a Financial ‘House of Cards’ 1 of 2 parts Some of us have come to believe that the greatest misallocation of financial resources in our lifetimes has been growing alarmingly & spreading globally for almost a generation and that, at some point, there will be very severe consequences. Most investors have been cognizant of the US economic & financial problems for quite some time. And I have written about the seriousness of these issues in previous Dollars & Sense (D&S) articles. However, until recently, I had neither realized the overall magnitude of misguided credit that “fuelled” a series of asset “bubbles” of unprecedented magnitude, nor how widely the risks had spread internationally. Many knowledgeable people still seem to believe the damage from the US housing slump and the current “Credit Crunch” are manageable situations. At least this is what is being stated publicly! Unfortunately, unbiased guidance from any group with a self-interest agenda may be suspect, and so, we need to judge for ourselves. Because a number of the current asset “bubbles” are of a historically unprecedented magnitude, it has been extremely difficult to grasp the seriousness of the future consequences. However, it will be shown that the various asset “bubbles” were the result of “irrational” speculation and that they are unsustainable. And when, not if, these unsustainable asset “bubbles” deflate, there could be a serious risk of massive credit default. By using information “gleaned” from major financial publications I will try to illustrate that the enormity of the probable credit crisis could pose a serious threat to the global financial system as well as to our own financial well-being. THE CONSEQUENCES HAVE STARTED TO SURFACE What has just started to happen in the equity & credit markets may be just the “tip of the iceberg” and that a severe “credit crunch” could cause the financial problems to worsen dramatically. As stated in a recent Bloomberg article: “A credit crunch is spreading fast, and once started, it won’t be easy to reverse.” For this review, I have relied on the fact that the mean valuations of most asset classes in the US have established long-term trends, sustained by certain tangible criteria. And, throughout US past history, whenever any of these asset classes experienced a relatively sudden, large, unjustified increase in mean valuation, the values have always “reverted to the mean” eventually. I have also concentrated on the better documented US asset “bubbles”, for this review. However, it is known that many other countries have also experienced similar unprecedented asset “bubbles”. The “Financial House of Cards” analogy, borrowed from a BARRON’s article, is being used to illustrate, in a very graphic manner, what is perceived to be happening to many US financial assets. Figuratively speaking, a “Financial House of Cards”
El Residente
appears to have been carefully built up and nurtured in the US over most of the last generation. All the pieces have been built up & sustained, with the combined efforts of the US financial institutions, Fannie Mae, Freddie Mac, The FED, and the Federal Treasury, “keeping the weather calm enough to minimize the shaking of the Cards”. In order to “keep the good times rolling” [consumers spending and the sales of various assets going strong], there appears to have been an issuance of an ever increasing volume of risky loans using increasingly more questionable financial credit instruments. This looked good for many years to the general public, most as willing buyers/borrowers, to the developers, builders, suppliers, bankers, mortgage lenders, agents & brokers, etc. and to the various government administrations, legislators, and agencies. However, as a result of insatiable demand for everything, including bigger houses, vehicles, second homes, more expensive “Toys”, etc., ever more debt was amassed by too many Americans [building a financial “house of cards” on credit]. This insatiable demand for credit apparently found a new source in recent years when far too many homes were used like ATM machines to get increasingly more money to spend. Eventually, of course, credit lines were being “maxxed out” for more & more people. All of this has to be unsustainable. And, some perceive this “House of Cards” has now become too great in magnitude & too spread out even for the mighty financial institutions to keep from collapsing. Now, let us examine some of the better known of the various assets [“Cards”]. CARD # 1 - US (and GLOBAL) HOUSING As a result the unprecedented demand for bigger residences, and second homes or condos, prices kept escalating far beyond any past peak in history. This is well illustrated in the 2nd Addition of Dr. Robert Shiller’s book called: “IRRATIONAL EXUBERANCE” To my knowledge, no one has refuted Dr. Shiller’s published study of US housing prices over the last 115 years. In fact, the S&P has adopted and is continuing to publish updated information as the Shiller/S&P Case Chart. This chart clearly shows that never before in US history did the magnitude of the overvaluation of US real estate (and probably global ex. Japan) reach anywhere near the 83% increase over 5 years of the current “bubble” to its peak early last year. And, because Shiller could find no cost or scarcity reasons to justify the sudden increase in prices, he had to conclude it was a speculative “bubble”, inflated by “irrational exuberance”. We agree with Dr. Shiller’s conclusion. With this in mind: Is there any reason to believe that the net value of this asset class will not “revert to the mean” eventually, just as the earlier US housing “bubbles” did in 1980-81 & 1990-91, or as the Japanese real estate “bubble’ did in the not so distant past, all with dire consequences? Therefore, if this is bound to happen eventually, one must recognize that the US housing market is still grossly overvalued (as it likely is in Canada, the UK, Costa Rica, Panama, etc.). Finally, because the purchase of a home is normally the largest investment made by average North American folks, what is going to be the effect on the huge number of homeowners involved Continued on page 25...
24
with assets that should eventually be worth, net of inflation, up to 40% less than they are today? CARD # 2 – MORTGAGES & HOME EQUITY LOANS In order to finance the current unprecedented real estate “bubble”, US and international financial institutions seem to have been very eager to loan higher & higher percentages of the total values for willing buyers to purchase homes & condos, even when their values surpassed any previous peak in US history. In addition, untold ten’s of millions of Americans appear to have got caught up in the craze, “escalating home values = vastly increased wealth”, and “gutted” much of the equity from their homes by taking equity loans. Many of these loans were probably used to put down-payments on 2nd homes or condos, the latest “gas-guzzler” vehicles, yachts, and other expensive “Toys”. Very recently, American Home Mortgage Corporation, the 8th largest mortgage lender in the US, closed its doors and filed for bankruptcy protection. What appears to be different about American Home was that it was the biggest lender yet that catered also to people with good credit. In an e-mail to employees, the American Home CEO said “conditions in the US mortgage market had deteriorated to the point that our business was no longer viable”. As Jimmy Rogers, the former Quantum billionaire partner, stated, “This was one of the biggest bubbles we have ever had in credit” …”and [it] has a long way to go”. He has been and will continue to “short” the US investment bankers and homebuilders. In the recent “HOUSE OF CARDS” article in BARRON’s, Stephanie Pomboy provided truly Al-ARMing statistics on ARMortgages. Her chart revealed that an astounding percentage of ARM’s are already “underwater” [when the value of the mortgage is higher than the value of the home]. And estimates were provided on how much more equity will be wiped out when, not if, home values decline further. For example, even a decline in home values of only 15% from the May 2007 average, would put almost 50% of home ARM’s “underwater” with a combined amount of negative equity of almost $1.4 trillion. The author optimistically estimated that lenders’ losses could approach $600 billion. However, because housing values should still have much farther to fall, it could spread to affect many leveraged prime borrowers. Thus, it would seem probable there will be a vast number of additional defaults in future at ever lower rates of recovery by the lenders. “And that” Stephanie points out “is just the direct “hit”. “Thanks to the ‘divine miracle of leverage’ the total financial exposure to the lenders should be many multiples of that”. What’s more, she notes, “these horrendous losses are starting to come at a time when the financial sector is “uniquely unprepared to withstand them”. Commercial banks, Stephanie reports, have let their loan-loss provisions sink to 20 year lows while increasing their exposure to real estate to record highs, estimated now at 55% of total bank loans. And, that does not include the trillion US$ worth of mortgage-backed securities on bank balance sheets. She declares it is a “myth that banks cleverly offloaded their real estate risk”. It is now a real concern that real estate defaults among
September-October, 2007
sub-prime mortgagees may be spilling over to other credit markets and hurt earnings and takeovers. As quoted before: “A credit crunch is spreading fast….” This does not bode well for the lenders, their Wall Street and Main Street backers, nor for the multitude of employees in these businesses. Already, the total number of mortgage lenderrelated jobs lost, to mid-August 2007, is approaching 40,000, and seems to be increasing daily. Even though this is just the beginning of the current downward trend, foreclosures on homes have already reached the level of the last housing “bust” in 1990. As loan losses escalate, it is difficult not to expect this might trigger a massive “credit crunch” CARD # 3 – CDO’S & OTHER DERIVATIVES I just recently became aware of just how extensively asset-backed securities, or CDO’s, were marketed aggressively by the Banks & Brokerage Houses. What was much more appalling to finally find out was that these CDO’s, even with much sub-prime content, had been “packaged” and sold as if they were quality bond investments. It is now also being revealed that many Bond Funds and even Money Market Funds bought these CDO’s in good faith because they yielded higher returns, as so many investors craved. Also coming to light is that the Rating Agencies were incredibly slack and never properly rated these CDO’s. In addition, it seems to be a clear conflict of interest that these Agencies are supported financially by the industry. We are also now starting to find out that, even before housing prices have really started to slump significantly, some of the CDO based Hedge Funds, such as the Bear Stearns funds, are reported to be worthless. This is because, as we just learned, hedge funds not only acquired these CDO assets of questionable quality, but many over-leveraged them. Where was the due diligence? It would be naïve to assume that these were isolated cases. The real question is: How many more of these “ticking time-bombs” are out there? Over the next few years, it is expected that many Pension & other Institutional Investment Managers, Banks & other Financial Houses, will realize they also have accounts chocked full of CDO assets of dubious & possibly unmarketable value. CARD # 4 - LBO’S The Leveraged Buyout (LBO) craze of recent years reminds me of a similar craze financed by “Junk Bonds”. Now, as then, far too many companies and private entities suddenly became acquirers of companies, in many cases at premium prices. Much of the financing was raised using leveraged loans. Very fortunately, a credit freeze has stopped this from getting even more absurd. But, there already appears to be more than $1 Trillion in these LBO’s out there. It is expected that, sooner or later, many of the acquisitions will fail once again to justify the purchase price for all the usual reasons……………., putting unwary investors at risk of losing much value. .... Continued next issue... For more information or reference details, please do not hesitate to email Alan Weeks at: imccr2002@ yahoo.com
25
Exchange rate of the Costa Rican ¢ to the US Dollar February 517.01 March
516.91
April
516.80
May
516.65
June
516.53
July
516.53
Basic Interest Rate February 9.75 % March
8.00 %
April
7.50 %
May
7.25 %
June
7.25 %
July
7.25 %
Exchange rate of other currencies to the US Dollar Japanese Yen 119.13 Swiss Franc
1.2045
Canadian $
1.0626
Giro (DEG)
1.5312
ÂŁ Sterling
2.0324
Euro
1.3709
Mexican Peso
10.910
Korean Won
918.65
Danish Krone Norwegian Krone Argentine Peso
5.4284 5.8116 3.1265
Colombian Peso 1,972.9 Brasilian Real
1.8690
Libor Rate 1 month 5.3200% 3 month
5.3587 %
6 month
5.3269 %
12 month
5.2450%
Prime Rate
El Residente
8.25 %
26
Holidays Of Costa Rica September 15th ‘Independance Day’ October 12th ‘Columbus Day’ ******************** A Touch of Wisdom “He that pays for work before it’s done, has but a pennyworth for two pence.” Ben Franklin (1706-1790) “It is better to be born a beggar than a fool.” Spanish proverb “Light gains make heavy purses.” George Chapman (c.1559-1634) ******************** Quick Ones A: Just look at that young person with the short hair and blue jeans. Is it a boy or a girl? B: It’s a girl. She’s my daughter. A: Oh, I’m sorry, sir. I didn’t know that you were her father. B: I’m not. I’m her mother. Mother: “Did you enjoy your first day at school?” Girl: “First day? Do you mean I have to go back tomorrow? Headmaster: I’ve had complaints about you, Johnny, from all your teachers. What have you been doing? Johnny: Nothing, sir. Headmaster: Exactly. Teacher: “Nick, what is the past participle of the verb to ring?” Nick: “What do you think it is, Sir?” Teacher: “I don’t think, I KNOW!” Nick: “I don’t think I know either, Sir!”
September-October, 2007
27
El Residente
28