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).
As a result of the economic crisis generated by the pandemic, it is estimated that four out of every five Central American companies were forced to increase their debts in order to sustain their operations.
According to the 2021 Regional Survey on economic reactivation prepared by the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), the resources obtained through indebtedness, served the companies to pay payroll, face rents and support operations.
The Central American Bank for Economic Integration approved a line of credit for the Honduran government to finance the Resilient Housing Reconstruction Program in the country.
The Central American Bank for Economic Integration (CABEI) informed that it is estimated that approximately 29,500 vulnerable families in the departments of Cortés, Atlántida, Yoro and Santa Bárbara will benefit from the rehabilitation, reconstruction or construction of new housing.
The Central American Bank for Economic Integration approved a line of credit for the country to finance the Project for the Expansion of the Drinking Water Supply System in the City of Gracias, department of Lempira.
The project consists of developing the hydraulic infrastructure necessary to increase the quality and quantity of water supplied by the supply system of the city of Gracias, Lempira, which currently has average interruption periods of 168 hours, reported the Central American Bank for Economic Integration (CABEI).
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.
The Central American Bank for Economic Integration approved a line of credit for the country to finance works to expand coverage, energy efficiency and resilience to climate change.
The funds will be used to finance part of the Development Policy Operations Program (OPD) to support the country in implementing the General Law on the Electricity Industry (LGIE).
It was agreed that debtors and financial institutions may define a new maximum payment date, in all those cases where the customer had to pay their fee during the curfew, which will be in force until April 12.
A grace period will also be granted that could be until June 30, 2020, depending on the needs of each client and the ability of the bank to maintain the necessary liquidity without receiving those payments, reported the National Commission of Banks and Insurance (CNBS).
As of January 2020, the country's private sector external debt amounted to Ch$1,802 million, 9.78% higher than that reported for the same month in 2019.
From the Central Bank of Honduras report:
The structure of the private external debt balance per type of debtor showed that the Financial Private Sector (SPrF) owes US$1,657.4 million (92.0% of the total) and the Non-Financial Private Sector (SPrNF) US$144.6 million (8.0%).
As of December 2019, the external debt of the private sector amounted to Ch$1,817 million, 11% higher than that reported at the end of 2018.
From the Central Bank of Honduras report:
The balance of private external debt at the end of 2019 was US$1,816.6 million, increasing US$175.6 million compared to the one reported at the end of 2018; result of a net use of US$191.4 million and a favorable exchange variation that reduced the balance by US$15.8 million.
As of November 2019, the external debt of the private sector reached Ch$1,722 million, which is 5% higher than that reported at the end of 2018.
From the Central Bank of Honduras report:
At the end of November 2019, the total external debt (public and private) registered a balance of US$9,031.0 million, higher by US$14.7 million than the one presented in December 2018.
As a result of the debt that the National Electric Energy Company has with the generators, the business sector fears that in 2020 there will be rationing in the supply of electricity.
For the Honduran Council of Private Enterprise (Cohep), it urges that the Honduran government cancel the debt to the power generators, which totals about $568 million. If the obligations are not paid, severe service rationing could be reported in the middle of next year, according to productive sector forecasts.
Up to September 2019, the external debt of the public sector reached $7.285 million, a figure that is $93 million lower than that reported at the close of 2018.
From the Central Bank of Honduras report:
At the end of the third quarter, the external debt of the public sector registered a US$7,285.0 million balance, decreasing 1.3% (US$92.9 million) compared to December 2018.
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.
Up to August 2019, the external debt of the public sector amounted to $7.290 million, a figure that is $88 million lower than that reported at the close of 2018.
From the Central Bank of Honduras report:
The public sector recorded an external debt balance of US$7,289.9 million up to August 2019, lower by 1.2% (US$88.0 million) compared to the closing of the previous year.
Up to July 2019, the external debt of the public sector reached $7.310 million, a figure 2% higher than that reported in the same month of 2018.
From the Central Bank of Honduras report:
The public sector external debt balance was US$7,310.2 million at the end of July 2019, US$67.7 million less than at the end of 2018. The above is explained by a net amortization of US$47.7 million (capital payments made for US$173.5 million that surpass the disbursements received for US$125.8 million) plus an adjustment for favorable exchange variation that reduces the balance by US$20.0 million, product of the appreciation of the US dollar against other currencies.