CABEI signed a memorandum of understanding with other Central American organizations to strengthen the development of the regional public debt market.
The agreement was signed by the Central American Bank for Economic Integration (CABEI), the Executive Secretariat of the Council of Finance Ministers of Central America, Panama and the Dominican Republic (SECOSEFIN), the Executive Secretariat of the Central American Monetary Council (SECMA) and the Association of Central American Stock Exchanges (BOLCEN).
Standard & Poor's has given a B+ rating to the $1.5 billion debt issue that Costa Rica expects to place in the international market in November.
"Global Ratings today assigned a "B+" rating to the prospective reopening of Costa Rica's notes which have a 7.158% rate maturing in 2045 and a "B+" rating in its planned issuance of notes maturing in 2031, the latter issue still does not have a defined trading rate," the rating agency said on November 8.
Although the goal for this year was to issue $100 million in debt bonds, during the first quarter the Nicaraguan government only awarded $1.1 million, doubting the level of investor confidence.
According to the "Public Debt Report, First Quarter 2019", prepared by the Central Bank of Nicaragua, from January to March regarding Investment Securities in dollars, 1.03 million was issued at an average rate of 5.31% and an average term of 7 months.
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.
"The tightening of global financing conditions is a concern for Central American countries with large current account deficits or those highly dependent on capital flows."
According to the report "World Economic Outlook - January 2019" compiled by the World Bank (WB), countries with a high external debt burden would be at risk if a sudden change in investor confidence in emerging market and developing economies were to occur.
At the end of the tenth month of 2018, Nicaragua's public external debt reached $5.838 million, 5% more than at the end of 2017.
According to these statistics up to October, the public external debt reached $5.838.1 million, which represented a $66.8 million net increase over the previous month, informed the Central Bank of Nicaragua (BCN).
From this total, US$4,056.2 million are debt with multilateral creditors (69.5%), US$1,741.8 million with bilateral creditors (29.8%) and US$40.1 million with private creditors (0.7%).
Arguing that the country's fiscal and financial profiles have weakened, Standard & Poor´s downgraded from B to B- the negative outlook for Nicaragua's foreign currency debt.
The negative outlook reflects a greater than one of every three probabilities of a downgrade in the next 12 months because of possible additional pressure on the balance of payments or the domestic financial system in dollar terms, given the government's limited foreign exchange financing options.
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.
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.
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."
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: