The agreement was signed by the Central American Bank for Economic Integration (CABEI), the Executive Secretariat of the Council of Finance Ministers of Central America, Panama and the Dominican Republic (SECOSEFIN), the Executive Secretariat of the Central American Monetary Council (SECMA) and the Association of Central American Stock Exchanges (BOLCEN).

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This agreement will broaden the investor base for sovereign issues, providing the region with more investment options and greater capital mobilization for its development, according to the document released by CABEI.

According to the multilateral organization, this agreement is particularly relevant in a scenario of economic crisis caused by Covid-19 and the effects of climate change, as it broadens the avenues of financing for CABEI member countries to boost their economic reactivation.

CABEI Executive President Dante Mossi explained that "... this initiative foresees the possible creation of an Operations Repository that will allow for the cross-border settlement of public securities, improving access and mobilization of financial resources within and to the region, as well as achieving greater levels of integration of our economies."

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Costa Rica Issues $325 Million in Debt

February 2021

During the auction held on February 1, 2021, the placement of domestic debt securities in local currency amounted to the equivalent of $210 million and in dollars to $115 million.

Through this mechanism, ¢129,667 million ($210.5 million) in Domestic Debt Securities Fixed Rate Colones and Sovereign Adjustable Real Domestic Debt Securities were allocated, informed the Ministry of Finance.

Panama Places Debt for $2.45 Billion

January 2021

The Central American country placed in the international market $1.25 billion at a rate of 2.2% expiring in 2032 and $1.2 billion at a rate of 3.4% expiring in 2060.

Panama ventured today into the international capital markets through the reopening of Global Bonds expiring in 2032 and 2060 for an amount of $2.45 billion, as part of the financing plan for fiscal year 2021, informed the Ministry of Economy and Finance (MEF).

Public Finances: What is Expected in 2021

October 2020

After the Alvarado administration agreed to backtrack on the proposal to negotiate a $1.75 billion loan with the IMF, it is predicted that next year the government will depend on domestic debt to finance its expenditures.

In mid-September, and in the context of a severe economic crisis that had been brewing before the pandemic, the Executive presented the plan with which it intended to mitigate the fiscal impact of the Covid-19 crisis, a proposal to negotiate an agreement with the International Monetary Fund (IMF) to obtain a $1.75 billion loan.

El Salvador Issues $1 Billion in Debt

July 2020

On July 8, the Salvadoran government issued $1 billion in bonds on the international market at a 9.5% interest rate with a maturity date of 2052.

The resources collected through this international issue are part of the $3 billion debt issuance authorized by the government and will be used to finance the health and economic crisis resulting from the spread of the Covid-19.