In its constant search for fresh resources to meet the interest payments on its growing debt as well as its current expenses, during the next few days the Ministry of Finance will return to the market to try to raise $290 million, through the issue of government debt bonds.

See: "Negative Outlook for Costa Rica's Debt"

The entity said that in addition to the issuance in dollars, for which it will offer a rate of 7% for 11 years, it expects to offer "... around ¢269,950 million ($470 million) in zero coupon instruments that mature in April, July and November of this year, 2018."

See: "Fiscal deficit, interest rates and poor management"

Regarding the issue in dollars, Nacion.com reports that "...The amount will be offered to the market in an open electronic window (direct placement) between Thursday 8 and Wednesday 14 February. The interest rate offered for this series, due in 2029, is 7%, with a yield or price of 95.54."

"... From November 2017, the entity announced that it would prepare a bond placement for $1.5 billion under the "placement contract" format, which is made with external investors but in the local market. The operation is still ongoing but details will not be disclosed until the process has been concluded, explained Martha Cubillo, deputy minister of Expenditures at the Ministry of Finance."

Source: Nacion.com

More on this topic

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The Ministry of Finance in Costa Rica has announced that between today and August 3 it will try to raise, through means of a direct issue in the local stock market, about $879 million.

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EDITORIAL 

If a private company faces liquidity problems for several months, does it borrow every month to pay salaries and other current expenses? The answer is no. It adjusts its operating expenses, reduces its return and tries to operate as efficiently as possible, trying to generate the highest income with the lowest possible expense structure.

Costa Rica: Tax Figures up to March 2017

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From a statement issued by the Ministry of Finance:

Authorities at the Treasury announced the performance of the central government's fiscal figures at the end of the first quarter of the year, which indicate how tax revenues continue to show good results, going from a rate of change of 7% in March 2016 to 8.5% in the same period this year.

Costa Rica to Issue $1.8 billion in Bonds

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From a statement issued by the Ministry of Finance:

The Ministry of Finance and the Central Bank of Costa Rica (BCCR) today presented their debt issuance plans for the coming months.