Between March of this year and the same month of 2018, the government's debt rose from $23.673 million to $25.893 million, a rise explained by the increase in external debt.
The balance of total public debt increased by $188.6 million (0.7%) with respect to the balance recorded at the end of February 2019, highlighting the disbursement of $52 million corresponding to the tenth tranche of Treasury Note 2023 with a coupon of 3.0%, and $35 million corresponding to the second auction of 12-month Treasury Bills with a weighted average yield of 3%, informed the Ministry of Economy and Finance.
The Panamanian government issued debt securities in the local market at a 3.75% interest rate, with a seven-year term.
It is the first time that international investors agree to the purchase of a treasury note Baa1/BBB/BBB issued under Panamanian Law and listed on the Panama Stock Exchange, using the Euroclear platform, informed the Ministry of Economy and Finance (MEF), in a statement.
The Ministry of Finance placed Treasury Bonds in local currency for amounts equivalent to $13 million and $45 million, with terms of 15 years and 20 years, respectively.
From the press release of the Ministerio de Finanzas Públicas (Equivalent to the US Department of the Treasury):
April 2019. The Ministerio de Finanzas Públicas held the eleventh event of placement of Treasury Bonds of the Republic of Guatemala for the 2019 Fiscal Year, whose results are the following:
Guatemalan businessmen assure that the change from Stable to Negative made by Fitch Ratings in the country's risk perspective should be taken seriously, since investments could stagnate.
On April 11, Fitch announced that it maintained its "BB" rating for long-term foreign currency debt default, but decided to modify the outlook because the country reflects political tension and greater uncertainty in agents, as well as a constant erosion in the government's low tax collection.
On April 12, Panama's state-owned electric company began the marketing stage for the potential issuance of international bonds, which would be at least $500 million.
"Once the issuer's international risk ratings have been obtained and after several months of arduous preparation, we are ready to market among the most important investors in the United States, Europe and Latin America, our company's first long-term bond issue," explained Gilberto Ferrari, general manager of Empresa de Transmisión Eléctrica, S.A. (ETESA).
Fitch Ratings confirmed the long-term foreign currency debt default rating of "BB", but changed the outlook from stable to negative.
The review of Guatemala's negative outlook reflects political tension and greater uncertainty in agents, as well as a constant erosion in the government's low tax collection, the rating agency argued.
Moody's assigned to Empresa de Transmisión Eléctrica de Panamá a Baa1 issuer rating, arguing that it reflects key credit strengths and is the only electricity transmission company in the country.
Gilberto Ferrari, general manager of Empresa de Transmisión Eléctrica (Etesa) explained to Panamaamerica.com.pa that "... This qualification is one of the most important milestones in the history of the company and the energy sector of our country.
The Ministry of Finance reported that the placement was made through an extraordinary auction of domestic debt securities in the local primary market.
Costa Rican authorities informed that the collection was made through fixed rate securities in dollars with expiration in 2024, 2026 and 2029, and was assigned to 15 different stock exchange positions.
At the end of last year, the public sector's external debt totaled $7.378 million, 3% more than the $7.145 million reported at the end of 2017.
The Public External Debt/Gross Domestic Product (GDP) Balance indicator at the end of 2018 stood at 30.5%, 0.6% lower than the figure reported at the end of 2017, informed the Central Bank of Honduras (BCH).
The latest risk ratings for the issuance of long-term debt of Central American economies identify Panama as the most attractive country to invest in.
On March 8, Moody's decided to raise its long-term issuer rating in foreign currency from Baa2 to Baa1, arguing that the outlook remains more favorable in the medium term.
Faced with the Costa Rican government's plans to issue $6 billion in debt over six years, the productive sector demands that "parallel and complementary actions for economic reactivation" must be implemented.
Currently, the deputies of the Legislative Assembly of Costa Rica have in their hands the bill that would authorize the government to issue debt securities in the international market (Eurobonds), a proposal that contemplates that in the first two years $1.5 billion are issued each year, and that in the remaining four $3 billion are issued.
The Ministry of Finance issued Treasury bonds in local currency in an amount equivalent to $17.5 million for a 20-year term.
From the Ministerio de Finanzas Públicas press release (equivalent to the US Department of the Treasury):
March 5, 2019. The Ministerio de Finanzas Públicas [Roughly equivalent to the US Department of the Treasury] held the sixth issuance event of Treasury Bonds of the Republic of Guatemala for the 2019 Fiscal Year, in which a 20-year term series was opened for the first time, for the maturity date 17/05/2039, with a coupon rate of 7.6250%, observing that of the total demand 64% corresponds to such series, which results in the confidence of investors in public securities, whose results are the following:
At the end of the first month of 2019, public external debt reached $5.966 million, 7% more than that reported in January 2017, a rise explained by loans granted by multilateral agencies.
The report of the Central Bank of Nicaragua (BCN) "... According to these statistics, public external debt totaled US$5,966.6 million, representing a net increase of US$17.0 million over the previous month.
Empresa de Transmisión Eléctrica de Panamá was authorized to make one or more issues and reopen securities in international markets for up to $750 million.
The issuance will take place in the first half of 2019, will be listed in the U.S. Securities and Exchange Commission and in the Superintendence of the Securities Market of Panama, informed Empresa Eléctrica.
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.