Costa Rican Government Keeps Going into Debt

The Andean Development Corporation approved a $500 million loan to the government of Costa Rica, which will be used to "achieve fiscal sustainability in the short and medium term.”

Tuesday, April 16, 2019

The Andean Development Corporation (CAF) reported that these resources will be used to obtain the benefits generated by the implementation of the Law to Strengthen Public Finances and Costa Rica's access to international markets.

The announcement of this new loan is one month after the Costa Rican Ministry of Finance reported that through an extraordinary auction, it placed $475 million in domestic debt securities in the local market.

See “Costa Rica: Government Issues $475 Million in Debt” and "More Debt, But with Economic Recovery".

From the CAF statement:

This loan will meet the country's short-term financing needs while consolidating the implementation of the Law to Strengthen Public Finances.

In order to contribute to the efforts being made by the Government of Costa Rica to consolidate a public policy that will guarantee long-term fiscal sustainability through improved management of the tax system and more efficient public spending, the Board of Directors of CAF, a Latin American development bank, approved a USD 500 million loan.

Read full article.

More on this topic

Less Investment in Costa Rican Debt Securities

December 2018

Because of fiscal uncertainty, in the first months of 2018, banks operating in the country reduced by 16% the amount invested in public debt securities in the local market.

Against the backdrop of doubts about the future of public finances in Costa Rica, it was reported that from January to September, 14 local public and private banks invested $3.190 million in government bonds.

Ambitious Plan for External Debt

November 2018

In Costa Rica, the Alvarado administration will ask the Congress for authorization to issue Eurobonds in international markets for at least $5 billion.

The Finance Minister, Rocío Aguilar, reported on November 20 that the country's public debt plans include the possibility of attracting more resources in the international market. One of the alternatives would be to place $5 billion in the next four years.

El Salvador: $350 million to Cover Fiscal Deficit

June 2018

El Salvador's Congress approved an IDB loan of $350 million to finance the government budget deficit at a 3.25% rate.

The president of the Legislative Assembly, Norman Quijano, stated that " ..." with the conditions offered by the IDB we will have an interest rate estimated at 3.25%, with the bonds we had an average rate of 7 and 8%, the reduction of interests will mean a saving of tens of millions of dollars for the country.' "

Fitch Upgrades Ccsta Rica to 'BB+'

March 2011

Fitch upgraded Foreign currency IDR to 'BB+' from 'BB'; Country ceiling to 'BBB-' from 'BB+'; Local currency IDR affirmed at 'BB+'; and Short-term IDR affirmed at 'B'. The Rating Outlook is Stable.

From the Fitch Report:

"The upgrade reflects Costa Rica's better than expected economic resilience during the global credit crisis, steadily improving macroeconomic stability underpinned by lower inflation and higher international liquidity as well as the country's relatively modest external indebtedness.

 close (x)

Receive more news about Government

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Management software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(May 20)
Brent Crude Oil
Coffee "C"