Costa Rica: Municipalities to Finance Works with Debt

Several regional governments are planning to issue debt in order to pay for public works projects such as highways and buildings.

Thursday, August 26, 2010

For example, a group of seven Atlantic region municipalities intend to issue $13.7 million of debt in order to improve their road infrastructure.

Cartago, meanwhile, announced that it will issue bonds to finance $80 million worth of projects including sewers, water mains and roads.

Nacion.com explains that, "the advantages of this kind of financing for the regional authorities are the terms of the debt, on average 15 years, enabling a programmed management of cash flow".

More on this topic

Costa Rica Prepares $4 Billion Debt Plan

June 2012

Costa Rica expects congressional approval within a month to sell as much as $4 billion in bonds abroad and plans an offering of at least $500 million by November, Vice President Luis Liberman said.

The country is preparing its first international issue since 2004, aiming to reduce the fiscal deficit which has already reached 5% of GDP.

Public offering of BICSA bonds for $100 million

August 2008

The Panama branch of the International Bank of Costa Rica (BICSA) has made a public offer of corporate bonds worth $100 million.

The listing and negotiation of these bonds has been authorized by the Panama Stock Exchange (BVP) and the National Stock Commission of Panama, however this authorization does not imply a recommendation or opinion of these stocks or the issuer, indicated a press release from the BVP.

Guatemala to Issue Bonds worth $432 million

September 2012

The proceeds of the issue will be used to settle obligations maintained by the Ministry of Communications, Infrastructure and Housing (CIV), with construction companies.

"What is still unclear is the technical procedure to register the issue in the Budget of Revenues and Expenditures of the Nation, as they are analyzing the possible impact on this year, and therefore the projected fiscal deficit for the current period", reported Siglo21.com.gt.

Monetary Board of Guatemala Authorizes Bonds

July 2013

The monetary authority has endorsed the issuance of $447 million in Treasury bonds, which will be used to settle debts with private contractors.

José Luis Agüero, president of the Guatemalan Chamber of Construction (CGC) believes that this is an important step to be able to honor the debt, and if Congress goes on to approve the issuance, they will become resources that will revive the economy.

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