The Ministry of Finance issued Treasury Bonds for an amount equivalent to $116 million, of which $52 million was in local currency and $64 million in foreign currency.
The overall amount of Treasury Bonds issued by the Republic of Guatemala so far, amounts to $414 million, corresponding to Fiscal Year 2020, of which one million correspond to Treasury Bonds issuances for small investors.
The Ministry of Finance issued Treasury Bonds for an amount equivalent to $215 million, of which $155 million was in local currency and $60 million in foreign currency.
The amount awarded represents 8.42% of the total value for which the Global Representative Certificate for Fiscal Year 2020 was issued, including issuances for Small Investors, officials said.
For this year, the government of Guatemala plans to issue an amount equivalent to $2.392 million, which includes new issues and titles that will expire soon and will be awarded again.
According to information from the Directorate of Public Credit, an entity of the Ministry of Finance (Minfin), during 2020 new issues will reach $ 1.845 million and collections or roll over, titles that expire but will be re-issued in the market, will be of $547 million.
The Ministry of Finance Awarded Treasury Bonds in local currency for $12 million, at a cut-off rate of 6.45% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public biddings and auctions ascended to Q.18,179.65 million ($2.360 million), corresponding to Fiscal Year 2019, of which Q.19.01 million ($2.46 million correspond to the awards of Treasury Bonds for small investors), informed an official source.
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $19 million, at a cut-off rate of 6.46% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including the awards made through public tenders and auctions ascended to Q.18,083.29 million ($2.348 million), corresponding to Fiscal Year 2019, informed the government.
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $13 million, at a cut-off rate of 6.49% and with a maturity date in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public tenders and auctions ascended to Q.17,680.8 million ($2,296 million), corresponding to the 2019 Fiscal Year, informed the Ministry of Finance.
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for $19 million, of which $2.3 million were placed at a cut-off rate of 5.7% and $17.1 million at 5.9%.
In this issuance system, $19.4 million were awarded, of which $2.3 million corresponded to the expiration date of 02/21/2028, at a cutoff price of 108.0101 and a cutoff rate of 5.6900%, and $17.1 million corresponded to the expiration date of 08/18/2031, at a cutoff price of 110.3852 and a cutoff rate of 5.9143%, informed the Ministry of Finance.
The Ministry of Finance of Guatemala issued Treasury Bonds in local currency for an amount equivalent to $19 million, maturing in May 2039 and at a cut-off rate of 6.6%.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public biddings and auctions ascended to Q.17,277.9 million ($2,243.9 million), corresponding to Fiscal Year 2019, informed the Ministry of Finance.
So far in the Morales administration, the Guatemalan government has raised $2.4 billion through the issuance of Eurobonds, but the quality with which the funds collected are being executed is questioned.
The last issuance of Eurobonds was on May 23, when the government issued $700 million over 30 years at a 6.12% rate, and $500 million over 10 years at a 4.9% rate.
Treasury debt securities were adjudicated in Quetzales for fifteen years and at a rate of 6.5%.
From a statement issued by the Ministry of Finance:
May 15, 2018.The Ministry of Public Finance held the 16th placement event forTreasury Bonds of the Republic of Guatemala in Fiscal Year 2018, the results of which are as follows:
The new administration has announced that the placement will be in the local market and resources will finance the 2016 budget.
The Ministry of Finance (Minfin) has released the rules for the bond issue and financing needed to make up the shortfall in resources for the new Guatemalan government.
Julio Héctor Estrada, head of the branch, told Elperiodico.com.gt that "we will be turning to the local market next week.
Fitch has also downgraded the issue ratings on Guatemala's senior unsecured foreign and local currency bonds to 'BB' from 'BB+', with outlook revised to Stable.
From the press release by Fitch Ratings:
Fitch Ratings has downgraded Guatemala's long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BB' from 'BB+'. Fitch has also downgraded the issue ratings on Guatemala's senior unsecured foreign and local currency bonds to 'BB' from 'BB+'. The Rating Outlooks on the long-term IDRs have been revised to Stable from Negative. In addition, Fitch has downgraded Guatemala's Country Ceiling to 'BB+' from 'BBB-' and affirmed the short-term foreign currency IDR at 'B'.
Warnings are being issued of a possible rise in the cost of credit if the government finances its spending with bonds issued in the local market.
Elperiodico.com.gt reports: "If Congress authorizes for the next fiscal period the issuance of $1.282 billion in bonds to finance public spending, as the executive branch plans, credit to the private sector could be affected ... ".
The monetary authority has endorsed the issuance of $447 million in Treasury bonds, which will be used to settle debts with private contractors.
José Luis Agüero, president of the Guatemalan Chamber of Construction (CGC) believes that this is an important step to be able to honor the debt, and if Congress goes on to approve the issuance, they will become resources that will revive the economy.