ColombiaDownload Full Scorecard
Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services
Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? Yes – Strong – Colombia has done a good job in its insolvency process and the financial sectors provide a wide variety of financial services to businesses, but its auditing and reporting standard is below the average.
5.1.1 What is the strength of the country’s auditing and reporting standards? Weak – 84th out of 144; Score 4.4 out of 7
5.1.2 Does the financial sector provide a wide variety of financial services to businesses? Strong – 66th out of 144; Score 4.7 out of 7
Source: The Global Competitiveness Report 2012-2013, World Economic Forum
Very Strong – Ranking – 21st out of 185 (2013) Trend ↓
5.1.3 What is the average time to complete bankruptcy proceedings? 1.3 years
5.1.4 What is the cost of bankruptcy proceedings as a percentage of the estate? 6%
5.1.5 What is the recovery rate of bankruptcy proceedings? 76.2 cents on the dollar
Source: Doing Business-2013 – Closing a Business www.doingbusiness.org/data/exploreeconomies/colombia
Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? Strong – the Colombian Society of Appraisers and the Federation of Real Estate Associations work together to certify appraisers.
SQ 19 How easy is it to find a valuer who implements International Valuation Standards? – Strong
Civil Society Resource: National Registry of Appraisers www.rna.org.co/
SQ 20 What is the level of training of valuers? Strong
SQ 21 Are opinions offered by valuers free of influence from parties to the transaction? Yes, Strong. A developing, independent valuation profession exists and an IVSC compliant code of conduct exists and is sporadically enforced.
Civil Society Resource: International Valuation Standards Council www.ivsc.org
Registro nacional de avaluadores, http://www.sic.gov.co/en/registro-nacional-de-avaluadores
Core Question: Is accurate property information available electronically in formats that are consistent with international standards? Weak – There is no uniform electronic exchange system and the building codes and office building measurement standards do not conform to international standards.
5.3.1 Sales & Operating Data
SQ 22 A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – weak, some internet sites starting to emerge, but no uniform system.
SQ 23 Do resources exist for obtaining building income and expense estimates? No – Weak
5.3.2 Interchange Formats
SQ 24 Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? Unknown
5.3.3 Technical Standards
SQ 25 Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? No – Weak
FQ9 How stable has the property market been over the last several years?
FQ10 How many independent valuers exist in the market?
FQ11 How many companies exist and what is the average size of valuation companies?
FQ12 What are the valuation standards and do they conform to international and regional standards?
FQ13 What valuation methods and techniques are used in the market?
FQ14 Are there valuer associations in the market? What number and percentage of practitioners belong?
FQ15 What training programs are available to upgrade the quality of valuers?
FQ16 Are peer review mechanisms in place to assist in enforcing ethical behavior?
FQ17 What is the quality of valuation reports?
FQ18 What is the status of proprietary databases that include property information?
FQ19 What is the status of existing data sharing mechanisms for properties that are for sale or that have sold?
FQ20 Do valuers have established data sharing mechanisms