At the end of the third quarter of 2018, Nicaragua's public external debt totaled $5.771 million, 4% more than that reported at the end of 2017.
The Central Bank of Nicaragua (BCN) reported that public external debt totaled US$5,771.3 million, representing a net increase of US$49.5 million over the previous month.
From this total, US$3,987.4 million correspond to debt with multilateral creditors (69.1%), US$1,743.2 million with bilateral creditors (30.2%) and US$40.7 million with private creditors (0.7%), the institution reported.
The Nicaraguan government authorized the Finance and Public Credit Ministry to issue $279.7 million in debt securities to cover the budget deficit.
The presidential agreement details that "In order to comply with the provisions of Article 6 of Law 978; Amendment Law to Law 966, Annual Law of the General Budget of the Republic 2018, increasing internal financing through greater issuance of bonds of the Republic of Nicaragua for a total of C$9, 035,600,000."
At the end of the second quarter of the year, the country reported that the total external debt amounted to $11.728 billion, an amount that exceeds by 1.9% what was recorded at the end of 2017.
Nicaragua's total external debt totaled 11.728 billion dollars, of which 6.0832 billion corresponds to the private sector and 5.6448 billion to the public sector.Total external debt increased by 175.7 million dollars (1.5%), compared to the first quarter of 2018, reported the Central Bank of Nicaragua.
Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.
Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products.Puerto Moín, the main outlet for exports, is onlyoperating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.
"Public debt in terms of simple average for the Central American region will continue growing, reaching 43.1% of GDP in 2018, after having registered 42.5% in 2017."
The Central American Institute of Fiscal Studies (Icefi) estimates that for the current year the size of public expenditure of the Central Government in relation to the respective Gross Domestic Product of each country will be 21.4% in Costa Rica, 20.4% in El Salvador, 20% in Honduras, 18.4% in Nicaragua, 17.6% in Panama and 12.1% in Guatemala.
Like lemmings running towards a cliff, Costa Rica repeats the kind of actions that underscore the definition of a society incapable of stopping on the road to a terminal crisis.
In the first six months of 2018, the country's public debt grew by 5%, going from $6.487 billion at the end of 2017 to $6.828 billion at the end of June.
Of the total public debt, 83% corresponded to public sector debt with external creditors (US $5.6448 billion) and the remaining 17% to debt with the Central Government and Central Bank of Nicaragua with the national private sector (US $1.1835 billion).
At the end of June 2018, Nicaragua's public external debt amounted to $5.645 billion, 2% more than was reported at the end of 2017.
The Central Bank of Nicaragua reported that as of June the public external debt totaled US $5.6447 billion, which represented a net increase of US $35.6 million with respect to the previous month.
S & P has downgraded the debt rating from B + to B, arguing that the escalation of the internal conflict has weakened governance, and the rating could be reduced again in the next 12 months if the violence continues to rise.
From a press release by Standard & Poor´s:
Heightened domestic conflict and ongoing violence have weakened governability and impaired the predictability and effectiveness of policy implementation in Nicaragua, in our view.
The downgrade and Outlook change reflect increasing political instability and the corresponding deterioration of Nicaragua's investment, economic growth, and public finance outlook
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-22 June 2018: Fitch Ratings has downgraded Nicaragua's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook is Negative.
Moody's has changed the rating outlook from positive to stable, citing the economic impact of the rupture of the consensus model for a national dialogue.
From a statement issued by Moody's:
New York, June 13, 2018 -- Moody's Investors Service ("Moody's") has today changed Nicaragua's rating outlook to stable from positive and affirmed its B2 long-term issuer ratings.
Explained by obligations with national creditors, between December 2017 and March 2018, the debt increased from $6.487 billion to $6.727 billion, registering an increase of 3.7%.
The Central Bank of Nicaragua reported that as of March 2018 "... Nicaragua's public debt totaled 6.7274 billion dollars, of which 5.6032 billion correspond to public external debt and 1.1242 billion to the debt of the Central Government and the BCN with the national private sector. Public debt increased by 3.7 percent compared to December 2017, mainly associated with an increase in debt with national creditors (US $183.6 million); debt with external creditors registered an increase of 57.2 million dollars."
Fitch Ratings is warning that the growing INSS deficit in Nicaragua and the failure of the reform which would have raised contributions of workers and employers, will increase the need for government financing, at about 0.6% of GDP per year.
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-27 April 2018: The Nicaraguan government's rollback of social security (INSS) changes amid widespread protests will lead to increased general government financing requirements and debt in 2018 and 2019, says Fitch Ratings. The INSS cash reserves previously projected to last through 2019 are depleting faster than expected. The protests and violence over INSS changes also underscore political risks from an increasingly centralized policy-making process reflected in Nicaragua's weak governance indicators.
The Central Bank awarded bills denominated in Córdobas for an amount equivalent to $17 million, and another $8 million in an auction held on April 25, 2018.
From a statement issued by the Central Bank:
April 25, 2018.The Central Bank of Nicaragua (BCN) reports that on April 25, 2018, in the BCN's auction of bills it was decided to: