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).
Arguing that there is a temporary need for liquidity in colons, on October 26 the Central Bank of Costa Rica decided to participate in the secondary market by buying two different series from the Ministry of Finance, with a maturity of 9 and 10 years.
On April 13, 2020, the Board of Directors of the Central Bank of Costa Rica (BCCR) authorized its Administration to participate in the secondary securities market of the Ministry of Finance and defined the conditions under which these transactions would be executed, with the objective of mitigating situations of systemic tension caused by temporary liquidity needs in colones, informed the monetary authority.
In an auction process in which more than 200 investors from different parts of the world participated, the bank placed the debt at a rate of 2.5% for a 10-year term.
This transaction is the first international bond issue in the capital markets of Banco Nacional in its almost 116 years of existence and represents the largest issue that any Panamanian financial institution has made.
The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.
The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.
The government issued $2.5 billion in sovereign bonds in the international market, maturing in 2056 and with an interest rate of 4.5%.
It is worth noting that this is the first sovereign bond issue since the beginning of the Covid-19 crisis in all of Latin America and that this transaction was executed with great success, exceeding more than 3 times the amount issued, reported the Ministry of Economy and Finance.
In order to face the health crisis, the Assembly authorized the issuance of securities for up to $2 billion, which will be issued in the national or international market.
According to the motion, 70% of the funds obtained will be used, as a priority, to attend to the health emergency and may be allocated to the fund for direct monetary transfers to economically vulnerable households, to cover the income shortfalls in the current budget, generated by covid-19 and to incorporate the resources into the General State Budget 2020, informed the Legislative Assembly.
The Ministry of Finance issued Treasury Bonds for an amount equivalent to $116 million, of which $52 million was in local currency and $64 million in foreign currency.
The overall amount of Treasury Bonds issued by the Republic of Guatemala so far, amounts to $414 million, corresponding to Fiscal Year 2020, of which one million correspond to Treasury Bonds issuances for small investors.
The Ministry of Finance issued Treasury Bonds for an amount equivalent to $215 million, of which $155 million was in local currency and $60 million in foreign currency.
The amount awarded represents 8.42% of the total value for which the Global Representative Certificate for Fiscal Year 2020 was issued, including issuances for Small Investors, officials said.
For this year, the government of Guatemala plans to issue an amount equivalent to $2.392 million, which includes new issues and titles that will expire soon and will be awarded again.
According to information from the Directorate of Public Credit, an entity of the Ministry of Finance (Minfin), during 2020 new issues will reach $ 1.845 million and collections or roll over, titles that expire but will be re-issued in the market, will be of $547 million.
In Honduras, Congress approved the creation of the Social Interest Housing Bond, which will be a state contribution in cash or in kind, and may not be less than 11% of the value of the home to be purchased or rented.
According to Article 18 of the law, to access these bonds, the Secretariat of Housing and Human Settlements (SEVIAH) will prioritize access to the bond and housing care for households with incomes less than or equal to four (4) Minimum Wages, at its highest scale in force, Congress reported.
The Ministry of Finance Awarded Treasury Bonds in local currency for $12 million, at a cut-off rate of 6.45% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public biddings and auctions ascended to Q.18,179.65 million ($2.360 million), corresponding to Fiscal Year 2019, of which Q.19.01 million ($2.46 million correspond to the awards of Treasury Bonds for small investors), informed an official source.
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $19 million, at a cut-off rate of 6.46% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including the awards made through public tenders and auctions ascended to Q.18,083.29 million ($2.348 million), corresponding to Fiscal Year 2019, informed the government.
For the business sector, the issuance of $2 billion in bonds by the government is positive, since "it allowed the country to quote, for the first time in history, a bond for more than 20 years with an interest rate below 4%.
On July 17, the Panamanian government was able to issue bonds for $1.25 billion with a 3.160% interest rate and maturity in 10 years (2030), and others for $750 million with a 3.870% rate and maturity in 40 years (2060).
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $13 million, at a cut-off rate of 6.49% and with a maturity date in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public tenders and auctions ascended to Q.17,680.8 million ($2,296 million), corresponding to the 2019 Fiscal Year, informed the Ministry of Finance.