Authorities from both countries agreed to work on the unification of their stock markets, starting with the issuance of a quota of Guatemalan subsidized debt directed to Salvadoran investors.
Representatives of the Guatemalan Ministry of Finance and the Ministry of Finance of El Salvador informed that before the end of this fiscal year, the Guatemalan subsidized debt will be approximately $13 million.
Institutional problems and lower levels of economic growth compared to other countries with the same risk rating, could cause in the future a degradation of Guatemala's debt rating.
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 Awarded Treasury Bonds in local currency for an equivalent amount of $19 million, at a cut-off rate of 6.2% and expiring in August 2034.
In the event of issuance of Electronically Registered Representative Certificates in Custody in the Banco de Guatemala, a demand for $42.9 million was received, corresponding in its entirety to the maturity date of 11/23/2039.
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.
For the rest of the year, the Guatemalan government plans to award Treasury Bonds for an amount equivalent to $136 million, which will be issued through an electronic system and physical title.
Days ago the Ministerio de Finanzas (Minfin) informed that 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.17,277.9 million ($2,243.9 million), corresponding to Fiscal Year 2019.
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.
Offering for the first time only dematerialized securities, the Government of Guatemala issued Treasury Bonds for the equivalent of $20 million, of which $7 million expires in 2028 and $13 million in 2039.
For the bonds awarded, $7 million correspond to the expiration date of 02/21/2028, at a cutoff rate of 5.9000%, and $13 million correspond to the expiration date of 05/17/2039, at a cutoff rate of 6.8800%.
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.
The government was able to issue $700 million over 30 years at a 6.12% rate, and $500 million over 10 years at a 4.9% rate.
The operation was carried out through the bank Citigroup Global Markets Inc, one of the three most important investment banks in the world, chosen through a competitive process, informed the Ministry of Finance.
The Ministry of Finance placed Treasury Bonds in local currency for amounts equivalent to $26 million and $13 million, with terms of 15 years and 20 years, respectively.
The global amount awarded to date totals $858.6 million, corresponding to the 2019 Fiscal Year, of which $26 thousand correspond to the awards of treasury bonds for small investors, informed the Government.
The Ministry of Finance placed Treasury Bonds in local currency for amounts equivalent to $13 million and $45 million, with terms of 15 years and 20 years, respectively.
From the press release of the Ministerio de Finanzas Públicas (Equivalent to the US Department of the Treasury):
April 2019. The Ministerio de Finanzas Públicas held the eleventh event of placement of Treasury Bonds of the Republic of Guatemala for the 2019 Fiscal Year, whose results are the following:
Fitch Ratings confirmed the long-term foreign currency debt default rating of "BB", but changed the outlook from stable to negative.
The review of Guatemala's negative outlook reflects political tension and greater uncertainty in agents, as well as a constant erosion in the government's low tax collection, the rating agency argued.
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 Ministry of Finance issued Treasury bonds in local currency in an amount equivalent to $17.5 million for a 20-year term.
From the Ministerio de Finanzas Públicas press release (equivalent to the US Department of the Treasury):
March 5, 2019. The Ministerio de Finanzas Públicas [Roughly equivalent to the US Department of the Treasury] held the sixth issuance event of Treasury Bonds of the Republic of Guatemala for the 2019 Fiscal Year, in which a 20-year term series was opened for the first time, for the maturity date 17/05/2039, with a coupon rate of 7.6250%, observing that of the total demand 64% corresponds to such series, which results in the confidence of investors in public securities, whose results are the following:
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