Less Investment in Costa Rican Debt Securities

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.

Friday, December 7, 2018

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.

See "A Fiscal Short Break for Costa Rica"

According to figures from the Central Bank of Costa Rica, between the first nine months of 2017 and the same period this year, banking sector investments in public bonds went down from $3.787 million to $3.190 million.

On the other hand, Rossy Durán, corporate finance manager of the Banco de Costa Rica, said to Nacion.com that "... the entity established a follow-up of Hacienda's issues among its risk analysis. It is unclear whether next year the reduction will continue or be reversed, as it will depend on the evolution of the credit in 2019."

Also see "Tax Reform: First Step"

On the subject, Annabelle Ortega, executive director of the Chamber of Banks and Financial Institutions, emphasized that "... in the last year there was a lot of uncertainty because of the government's fiscal situation and repercussions on decisions. The behavior of credit will be determinant to decide the final pipeline of productive assets during 2019."

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More on this topic

Panama Issues $2 Billion in the International Market

July 2019

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).

Treasury Bonds: How Much Still to Be Awarded?

June 2019

For the rest of the year, the Guatemalan government plans to award Treasury Bonds for an amount equivalent to $136 million, which will be issued through an electronic system and physical title.

Days ago the Ministerio de Finanzas (Minfin) informed that 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.17,277.9 million ($2,243.9 million), corresponding to Fiscal Year 2019.

Costa Rica: Government Swaps $165 Million

February 2019

In the exchange of foreign currency debt that took place on February 6, the Ministry of Finance managed to negotiate $165 million of $428 million offered.

Grupo Prival reported that the debt that was swapped expired in 2019, 2020 and 2021, and now the bonds will expire in 2023 and 2026, which will give more looseness to the authorities to manage the country's public finances.

Costa Rica: Debt Placement Plan - II semester

July 2016

In the remainder of the year the government plans to issue $1,115 million in the local market, and launch a new type of debt instrument to encourage investment in longer maturities.

From a statement issued by the Ministry of Finance:

The Ministry of Finance announced this afternoon the financial measure it is planning consisting of a gross placement of ¢960,000 million for the second half of the year, of which 37.5% has already been raised.

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