In Costa Rica, a good part of the population is significantly indebted, since it is estimated that two out of every five consumers dedicate 38% or more of their monthly income to debt repayment.
The Office of the Financial Consumer (OFC) conducted during November 2020, the first survey of "Indebtedness of Costa Rican households", for which 1,200 people from all over the country, aged between 18 and 65 years old, were interviewed.
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%).
Treasury authorities announced that plans for this year are to negotiate with the Legislative Assembly for approval to issue debt in the international market, and if approved, the issuance would take place in 2021.
Last year the executive branch's plans were to issue $6 billion in Eurobonds, but the Legislative Assembly approved the issuance of only $1.5 billion, arguing that the amount proposed at the beginning was too high.
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.
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.
Because of its financial and competitive strength, the rating agency Fitch Ratings confirmed that the risk rating as an issuer of long-term debt is "A", with a stable outlook.
The ratings reflect an underlying asset that is critical not only for Panama, but also for international trade, as evidenced by its stable volume performance, solid competitive position and well-diversified cargo mix, the ratings company explained.
The entity and the Honduran government agreed to "a combined credit facility of Special Drawing Rights and 24-month Extended Credit Service, for $311 million."
For the country's business sector, the agreement between the International Monetary Fund and Honduras "represents a commitment by the government to maintain macroeconomic stability, a fundamental pillar that favors the country's competitiveness and creates the minimum conditions for the promotion of investment. See "Cohep Expects IMF Agreement to Maintain Macroeconomic Stability".
In recent months, the credit portfolio of public and private banks in Costa Rica has been growing at a slower rate, partly because of high levels of indebtedness of the population.
According to figures from the Central Bank of Costa Rica, between October 2018 and March 2019 the year-on-year growth of credit has generally slowed, since the increase in the portfolio of private banks fell from 14% to 12%, in public banks the decline was from 1.37% to 0.75%, and in the case of other financial intermediaries the decline was from 8.86% to 6.97%.
Empresa de Transmisión Eléctrica de Panamá issued seven-year local market debt securities with a 3.85% interest rate.
Empresa de Transmisión Eléctrica S.A. (ETESA) made its first issue of corporate bonds in the Stock Market of Panama, for the sum of seventy-five million dollars ($75 million) to be used to finance investment projects included in the Expansion Plan of the National Interconnected System (PESIN) of 2018, said the institution in a statement.
The Empresa de Transmisión Eléctrica de Panamá issued debt securities for 30 years at a 5.125% interest rate.
The bonds have a deadline in May 2049, i.e. 30 years from the date of issue and will have a grace period on capital payments of 15 years, informed the institution.
On April 12, Panama's state-owned electric company began the marketing stage for the potential issuance of international bonds, which would be at least $500 million.
"Once the issuer's international risk ratings have been obtained and after several months of arduous preparation, we are ready to market among the most important investors in the United States, Europe and Latin America, our company's first long-term bond issue," explained Gilberto Ferrari, general manager of Empresa de Transmisión Eléctrica, S.A. (ETESA).
Consistent with the behavior of recent years, up to October 2018 the number of credit cards circulating in Costa Rica totaled 2.98 million, 14% more than in the same month of 2017.
From the report of the Ministry of Economy, Industry and Commerce (MEIC):
The last quarterly study of credit and debit cards, as of October 31, 2018, conducted by the Ministry of Economy, Industry and Commerce (MEIC), through the Directorate of Economic and Market Research, determined that in nine years, the number of credit cards in the country increased 125%, representing a total of 2,984,769 plastics in circulation of which 1,976,522 are holders and 1,008,247 are additional plastics, i.e. linked to a cardholder.
Up to November 2018 in Panama, bank debt by credit cards totaled $2.464 million, 9% more than in the same month of 2017.
Figures from the Superintendence of Banks specify that in one-year credit card debt increased by $212 million, going from $2.252 million in November 2017 to $2.464 million in the same month of 2018.
Regarding the levels of indebtedness reported in the country, Olmedo Estada, secretary general of the College of Economists of Panama, explained to Prensa.com that "... if the person does not know how to manage his/her finances, he/she will quickly reach the top of the credit card and when that happens, he/she will not be able to pay even the minimum quota, which will generate interest on interests and when he/she realizes he/she owes double or triple of what was really approved."