Juggling Public Finances

Between today and February 14 the Ministry of Finance in Costa Rica will go to the local market with the goal of issuing $290 million, at a rate of 7% and maturing in 2019.

Thursday, February 8, 2018

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."

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From a statement issued by the Ministry of Finance:

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