The issuance of $500 million in the international market was placed with a 10-year term and an interest rate of 4.5%, the lowest of all issuances so far.
From a statement issued by the Ministry of Finance:
The Ministry of Public Finance today concluded a transaction for US $500 million of Eurobonds with an interest rate of 4.5% for 10 years, the lowest rate of all issuances.This action is consistent with the strategy of diversifying the financing of public spending, obtaining funds from the local bond market, multilateral banking and global markets.
In terms of 5 to 15 years and rates of 5.5% and 7%, respectively, the government issued Q97 million worth of treasury bonds, equivalent to $12.6 million in the second auction of the year.
From a statement issued by the Ministry of Finance:
The results of the placement of Treasury Bonds made on 28 March 2017, are:
Before June the Ministry of Finance plans to issue between $500 million and $700 million in foreign debt securities on the international market.
The debt bond issue being prepared by the Ministry of Finance will have similar characteristics, to the issuance made in the international market in May 2016. In that issue $700 million was placed, at an interest rate of 4.6% and a term of 10 years.
The borrowing plan presented by the Treasury for the first half of the year includes an issue of debt securities in the local market for up to $1.8 billion, mostly at a fixed rate.
From a statement issued by the Ministry of Finance:
The Ministry of Finance and the Central Bank of Costa Rica (BCCR) today presented their debt issuance plans for the coming months.
At terms of 10 to 15 years and rates of 7.1% and 7.2%, respectively, the government issued treasury bonds worth Q471 million, equivalent to $61 million in the first auction of the year.
From a statement issued by the Ministry of Finance:
The Ministry of Finance held the first event issuing Treasury Bonds of the Republic of Guatemala for the Fiscal Year 2017, where, as in the first event in 2016, investors showed a level high interest, and on that occasion demand amounted to Q.2,884.46 million.
In the first auction only large investors may take part and from the second semester issues will be made for short terms and low amounts, aimed at small investors.
Using the online platform State debt securities can be bought by local investors, through brokers approved by the stock exchange.The regulations published in the official newspaper La Gaceta establish how the auctions will be conducted, and the settlement and interest payments.
The $700 million in bond debt issued at a ten-year term at a rate of 6.25% will be used to pay the commitments of the National Electricity Company.
From a statement issued by the Ministry of Finance in Honduras:
The Government of the Republic through the Ministry of Finance, managed the successful issue of sovereign bonds in the order of $700 million to pay commitments of the National Electricity Company.
The Ministry of Finance will be attempting to raise funds in the international and local market in order to improve the public debt profile.
The endorsement by the Congress will allow the Ministry of Finance to extend the term and reduce the cost of part of the public debt.The amount authorized amounts to $891 million and the Ministry of Finance plans to use the local and international markets to renegotiate.
Treasury debt securities were issued in Quetzales for an eight year term and with a rate of 6.35%.
From a statement issued by the Ministry of Finance:
The results of the placement of Treasury Bonds on November 22, 2016, are as follows: demand was received for Q.825.1 million, of which 100.0% corresponded to the maturity date of18/11/2024. This time Q.250.0 million was issued, ie 30.3% of demand, at a cut off price of 102.4757 and cut off rate of 6.3500%.The total issued to date amounts to Q14,493.46 million, leaving Q467.39 millionavailable for issue for the fiscal year 2016.
The union of private companies has filed suit citing unconstitutionality against the law authorizing the state to use the savings of contributors to pay debts.
The National Association of Private Enterprise (ANEP) filed with the Supreme Court (CSJ) a claim of unconstitutionality against thelaw recently approved by the Assembly.
A law passed by the Legislative Assembly authorizes the State to use the savings of contributors to pay debts, putting at risk the value of future pensions.
The Salvadoran Association of Pension Funds (Asafondos) is opposed to the measure because it involves "... an endless cycle of debt generation, which would grow unchecked over time, without guarantee of payment for workers."
The government has already reached 72% of the maximum amount of issuance of Treasury Bills that is permitted by law, and it only has $370 million available to borrow this year.
Given the critical fiscal situation, the Sanchez Ceren administration is insisting in the Legislature on the approval of a bill to issue another $1.2 billion in debt.According to the government, several commitments can not meet unless these funds are available.For the remainder of the year the only remaining possibility is the issuance of $370 million in short-term debt in the local market.
In the remainder of the year the government plans to issue $1,115 million in the local market, and launch a new type of debt instrument to encourage investment in longer maturities.
From a statement issued by the Ministry of Finance:
The Ministry of Finance announced this afternoon the financial measure it is planning consisting of a gross placement of ¢960,000 million for the second half of the year, of which 37.5% has already been raised.
The Solis administration has restructured its debts in order to postpone for three years the payment of $842 million for domestic debt titles.
Although the government of Luis Guillermo Solís calls it "the best period in debt swaps in the history of the Ministry of Finance", the decision to redeem debt securities maturing between September 2016 and December 2017 for securities with maturities of more than three years, helps improve the maturity profile, but in reality it is "kicking down the line" a serious cash flow problem that needs to be resolved urgently.