Debt portfolios formed with the Costa Rica State Bonds, are starting to be affected by the decline in bond prices.
The low prices of the Costa Rican government bonds are causing dissatisfaction among investors, especially among those who have to value their assets at market prices.
For example, a fixed rate certificate maturing in 2015 was offered on January 9th at a price of 99.75 and on 13th February the figure was 95.41, reports Elfinancierocr.co.
Increased public spending in Costa Rica, especially in the payment of wages, has become a threat to the entire economy and should be corrected by cuts or higher taxes.
Overspending in the public sector and in the decentralization of institutions has meant that for the present year, 2011, a higher deficit than ever before in the last ten years has been projected.
86% of investments offered by the Treasury in its latest auction expire in 2015.
The results of the auction of Treasury bonds, held this week, show the clear preferences of the Costa Rican investors, who at this juncture do not perceive greater economic stability in the long term
In the auction the Treasury collected ¢31 billion, after having received bids for an amount of ¢57 billion.