The Central American Bank for Economic Integration approved a $24 million extension of an existing line of credit, funds that will be invested in the implementation of sustainable production models and forest management and reforestation.
These funds will be used to increase financing for the "Bio-CLIMA Project: Integrated Climate Action to Reduce Deforestation and Strengthen Resilience in the Bosawas and Rio San Juan Biosphere Reserves" on Nicaragua's Caribbean Coast.
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).
In this regional context of economic crisis, falling fiscal revenues and increasing public debt, Costa Rica's debt level is expected to rise to 75% of GDP by 2021, and in the case of El Salvador, the indicator could exceed 85%.
The outbreak of covid-19 in Central America forced the government to declare severe household quarantines and to restrict several economic activities, restrictions that in some cases are still in place after five months of health and economic crisis.
As of August 2019, the balance of the country's public external debt reached $6,116 million, 3% higher than the amount reported at the close of 2018.
Between December 2018 and August 2019, the ratio of debt to GDP also increased, from 45.4% to 49.3%, according to the most recent report by the Nicaraguan Foundation for Economic and Social Development (Funides).
Standard & Poor's warned that if in the coming months the political environment worsens or access to local and external financing deteriorates again, the debt note could suffer further deterioration.
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.
At the eighth month of the year, the balance of the country's public external debt totaled $6,116 million, 3% higher than that reported at the end of 2018.
Of the total public external debt, 70% corresponds to debt with multilateral creditors and 29% to bilateral creditors, reported the Central Bank of Nicaragua on September 27.
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.
At the end of June 2019, Nicaragua's public external debt reached $6.057 million, an increase of $107 million over December 2018.
From the Central Bank of Nicaragua statement:
According to official statistics, the balance of public external debt up to June 30, 2019 was of 6,057.0 million dollars, which represented a 46.0-million-dollar increase regarding the balance registered in the previous month (US$6,011.0 million).
At the end of the fifth month of 2019, Nicaragua's public external debt reached $6,011 million, which represents a $61 million increase over what was reported in December 2018.
From the Central Bank of Nicaragua statement:
According to these statistics, the balance of the public external debt up to May 31, 2019 was of 6,011.0 million dollars, which represented a 6.7-million-dollar decrease regarding the balance registered in the previous month (US$6,017.7 million). Compared to the balance up to December 2018 (US$5,949.6 million), this represented a 61.4-million-dollar increase, as a result of disbursements of external loans to the month of May in 149 million dollars, mainly from multilateral institutions (US$125.6 million), and principal payments of contracted debt for 74.3 million dollars.
At the end of the fourth month of 2019, the public external debt reached $6,018 million, which represents a $68 million increase with respect to what was reported in December 2018.
From the Central Bank of Nicaragua report:
According to these statistics, the balance of the public external debt was 6,017.7 million dollars to April 30, 2019, which represented a net increase of 30.1 million dollars regarding the balance registered in the previous month (US$5,987.6 million) and of 68.1 million dollars regarding December 2018 (US$5,949.6 million).
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.
At the end of last year, Nicaragua's public external debt totaled $5.940 million, 7% more than at the end of 2017.
The Central Bank of Nicaragua reported that "... According to statistics, public external debt totaled $5,940.1 million up to December 2018, representing a $58.3 million net increase over the previous month.
Of this total, US$4,140.7 million are debt with multilateral creditors (69.7%), US$1,748.9 million with bilateral creditors (29.4%) and US$50.5 million with private creditors (0.9%).
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%).
Businessmen are opposing, because of its illegality, the position of the Department of Revenue, which is ordering free zone companies not to buy raw materials or services from providers who owe taxes.
In addition, the Department of Revenue (DGI by its initials in Spanish), asked companies to ask suppliers to pay off their debts, a proposal that has been rejected by the private sector.
español
6004
