Costa Rica Expects to Issue More External Debt

The government is preparing a bill for the Assembly to authorize a debt issue on the international market next year.

Friday, July 14, 2017

The Ministry of Finance is considering raising money abroad in order to avoid pushing interest rates up in the local market. If the Legislative Assembly approves the bill, the government will turn to the international market to raise the 1.2 trillion colones that it needs to pay for domestic debt securities due next year.
 
Deputy Finance Minister Fernando Rodríguez explained to Nacion.com that "... the ideal thing would be for the Legislature to approve first a reform in sales and income taxes, which will raise the revenues of the central government and alleviate the fiscal deficit which has reached 5.2% of GDP."
 
See: "Moody's Downgrades Costa Rica's Debt Rating"
 
"... The Ministry will do the numbers to determine how expensive it would be for the State to borrow from abroad, because the Costa Rican debt rating fell in the last year and, consequently, the interest rates to be paid will be higher."

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