Explained in part by doubts about the economic future in the short term, in Costa Rica credit granted to companies and individuals went from growing at an annual rate of 8% in January to 4% in June of this year.
According to figures from the Central Bank of Costa Rica, in the first six months of the year credit to the private sector has reported a clear downward trend, since in January the amount registered amounted to $34.072 billion and the increase compared to the same month in 2017 was 7.9%.
The Central Bank explained that the short-term loan of almost $870 million to the Ministry of Finance will have no impact on inflation.
From a statement issued by the Central Bank of Costa Rica:
September 25, 2018.In accordance with what is authorized by Costa Rican legislation, the Board of Directors of the Central Bank of Costa Rica (BCCR) agreed, on Tuesday, September 25, 2018, to the acquisition of Treasury Notes, issuedby the Ministry of Finance, for an amount of ¢498,858.8 million.
In Costa Rica, the Ministry of Finance has announced that in the remainder of the year, it will need to capture close to $2.8 million from the local stock market.
From a statement issued by the Ministry of Finance:
August 23, 2018.Authorities at the Ministry of Finance and the Central Bank (BCCR) today presented to the stock market-financial sector,the issuance plan for internal debt of the Central Government for the second half of this year, for a total amount of two billion colones.
The new tax reform proposal being discussed in Costa Rica raises capital gains tax from 8% to 15%, and also excludes recognising as a debt deposits made by issuers in the securities market.
In the view of the National Stock Exchange (BNV), not recognizing deposits made in the stock market as debt leaves it at a clear disadvantage, compared to banks, as a source of financing for companies.Not only does it compromise access to investors' savings, it also significantly limits companies and individuals investment options.
The Ministry of Finance in Costa Rica has announced that between today and August 3 it will try to raise, through means of a direct issue in the local stock market, about $879 million.
Authorities reported that two issues of securities will be offered for sale on the Siopel platform of the National Stock Exchange.The first, of $284 million, will have a gross rate of 9% with maturity in 2020, and the second of $595 million, with a gross rate of 10.79% with maturity in 2028.
The government of Costa Rica announced that in the first semester it would issue up to $2.175 billion in debt securities in the local market, however, as of June it has already issued $3.633 billion.
In February of this year, the Ministry of Finance announced that in the first semester it would issue $2.175 million in debt securities through the auction mechanisms and electronic window in the local market.But according to data from the National Stock Exchange, from January to June, the amount awarded exceeded the initial estimates by 67%.
To avoid further pressure on local interest rates, the Ministry of Finance will be considering issuing $1 billion a year in the international market over the next four years.
Representatives from the Ministry of Finance confirmed that they are preparing an application to the Legislative Assembly to issue $4 billion in debt securities in the international market.
In the local market, an issuance was made of a fixed-rate security with maturity in November 2021 and 216 billion in securities in colones, with terms ranging from 2020 to 2029.
In a statement, the Ministry of Finance reported that"...The issue in colones raiseda total amount of ¢216,205.83 million, in different titles with maturity from 2020 to 2029, associated with fixed and variable rate coupons (Sovereign Adjustable Real) anda fixed rate in dollars with expiration in November 2021, in which $514.82 million was raised; assigned to 15 participants."
During the first semester, the government plans to issue up to $2.175 billion in debt securities through auction mechanisms and electronic windows in the local market.
According to the plan presented by the Ministry of Finance and the Central Bank, the debt figure "... contemplates issues through the mechanisms of auctions and electronic windows. This amount does not include loans made through internal debt placement contracts or debt swaps. In liabilities management, the plan is to continue swaps and reverse auctions."
The Costa Rican Stock Exchange is preparing a bond plan for companies that seek to finance renewable energy, agriculture, and waste management projects, among others.
The aim of the authorities at the National Securities Exchange (BNV), is to have the first issue of bonds of this type ready in the last quarter of 2018.The plan is to provide financing alternatives through the stock market for projects"... new or existing ones that qualify as green projects, that is to say, that contribute to mitigating the effects of climate change or adapting to them."
The Bank of Costa Rica has received approval to issue bonds and commercial papers in the Panamanian stock market for a total of up to $500 million.
At the end of September the Superintendency of the Securities Market of Panama (SMV) issued a resolution authorizing the Costa Rican state bank to issue bonds in dollars for up to $250 million and commercial paper up to the same amount.
The Ministry of Finance has announced that within six weeks it will issue an internal debt bond for a maximum of $1.5 billion, under the model of "placement contract".
From a statement issued by the Ministry of Finance:
November 17, 2017.- The "Placement Contract" model is a new mechanism through which the Ministry of Finance will manage an internal debt placement for up to 1,500 million dollars, a relevant fact that was communicated this afternoon to the financial media.
The government is preparing a bill for the Assembly to authorize a debt issue on the international market next year.
The Ministry of Finance is considering raising money abroad in order to avoid pushing interest rates up in the local market.If the Legislative Assembly approves the bill, the government will turn to the international market to raise the 1.2 trillion colones that it needs to pay for domestic debt securities due next year.
The concessionaire of route 27 plans to place up to $374 million in the Costa Rican stock market to repay outstanding balances on a bank loan.
A rating report by Fitch Ratings states that Globalvía, through the issuer Autopistas del Sol, plans to"... issue local notes for a total amount of up to USD374 million.The 2017-A-CR Series will be denominated in US dollars for up to USD104 million and for a term of 10 years, while the 2017-A-CR Series will be denominated in US dollars for up to USD270 million and for a term of 14 years. Both series will maintain a fixed interest rate."
The borrowing plan presented by the Treasury for the first half of the year includes an issue of debt securities in the local market for up to $1.8 billion, mostly at a fixed rate.
From a statement issued by the Ministry of Finance:
The Ministry of Finance and the Central Bank of Costa Rica (BCCR) today presented their debt issuance plans for the coming months.