Between July 2017 and the same month this year, the country reported a 5.4% increase in the balance of its total external debt, rising from $8.229 billion to $8.674 billion in July.
The Central Bank of Honduras reports that at the end of July 2018, the balance of total external debt (public and private) was US $8.6739 billion, evidencing an increase of US $101.1 million with respect to the amount registered up to December 2017 (US $8.5728 billion), mainly explained by the net use (disbursements minus amortizations) of US $138.3 million, which is partially offset by a favorable exchange variation of US $37.2 million.
Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.
Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products.Puerto Moín, the main outlet for exports, is onlyoperating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.
"Public debt in terms of simple average for the Central American region will continue growing, reaching 43.1% of GDP in 2018, after having registered 42.5% in 2017."
The Central American Institute of Fiscal Studies (Icefi) estimates that for the current year the size of public expenditure of the Central Government in relation to the respective Gross Domestic Product of each country will be 21.4% in Costa Rica, 20.4% in El Salvador, 20% in Honduras, 18.4% in Nicaragua, 17.6% in Panama and 12.1% in Guatemala.
Uncertainty caused by the deteriorating fiscal situation and the economic slowdown are the reasons for the increase in the dollar exchange rate compared to the Colón, which has seen twelve days of consecutive increases.
According to Central Bank authorities, the depreciation of the local currency in relation to the US dollar is partially explained by the doubts generated by the deterioration of public finances and the absence, to date, of a legislative agreement to resolve at least part of the problem, all in the context of rising international interest rates.
Like lemmings running towards a cliff, Costa Rica repeats the kind of actions that underscore the definition of a society incapable of stopping on the road to a terminal crisis.
In Costa Rica, the active participation of the government issuing debt in the local market and the uncertainty over fiscal reform are some of the reasons behind the sharp slowdown in growth of credit to the private sector.
Although awards of loans to the private sector are still growing, they is doing so at a slower pace.According to official figures between January and June of this year, the inter-annual growth rate of the total credit portfolio went from 9.25% to 3.08%, which is equivalent to a drop of six percentage points.
In the first six months of 2018, the country's public debt grew by 5%, going from $6.487 billion at the end of 2017 to $6.828 billion at the end of June.
Of the total public debt, 83% corresponded to public sector debt with external creditors (US $5.6448 billion) and the remaining 17% to debt with the Central Government and Central Bank of Nicaragua with the national private sector (US $1.1835 billion).
In Costa Rica, the Ministry of Finance has announced that in the remainder of the year, it will need to capture close to $2.8 million from the local stock market.
From a statement issued by the Ministry of Finance:
The Ministry of Finance has issued Treasury bonds in local currency for an amount equivalent to $48 million, receiving total demand of $130 million.
From a statement issued by the Ministry of Finance:
August 21, 2018.The results of the sale of Treasury Bonds of the Republic of Guatemala represented by Account Annotation (Public Bidding); and of Representative Physical Certificates and Representative Certificates Electronically Registered in Custody of Banco deGuatemala (Auction and Public Bidding) held on August 21, 2018, with a total demand of Q.941.70 million and US $ 17.0 million, were the following:
Leaving out VAT on private education and the basic basket, the substitute text of the bill to Strengthen Public Finances was approved in the legislative committee.
The controversial substitute text of the Bill Strengthening Public Finance that has already passed the first filter, and may now be analyzed by the Plenary of the Assembly, left out two of the taxes that the Alvarado administration intended to implement in its plan: VAT of 1% and 2% on products in the basic basket and 2% on private education services.
In the first semester, the fiscal deficit of the non-financial public sector was 1.6% of GDP, registering an increase of almost $1 billion with respect to the same period in 2017.
From a statement issued by the Ministry of Economy:
The results of the Fiscal Balance of the Non-Financial Public Sector (SPNF), corresponding to the first semester of 2018, were presented by the Minister in charge of Economy and Finance, Eyda Varela de Chinchilla, at a press conference, which showed income totals in the order of B /. 5,723 million and total expenses of B /. 6.785 million.
The high level of financing and the economic slowdown explain the increase in the fiscal deficit of the central government, which at the end of July reached 3.3% of GDP, the highest in the last six years.
The decrease in tax revenues, due to a slowdown in economic activity, added to the high level of government debt, explained the strong rebound in the fiscal deficit in the first half of the year.Of the total deficit, about two thirds correspond to interest.
The Central Bank has revised down its year-on-year GDP growth forecast for 2018, from the range of 3.8% to 4.2%, projected at the beginning of the year, to a range of 3.6% to 4%, but has kept the projection of inflation unchanged.
From a statement issued by Banco Central de Honduras:
The proposal to increase the tax on interest on financial investments in Costa Rica could eventually make credit more expensive for both the private sector and the government.
In the view of the National Securities Exchange (BNV) it is worrisome that initiatives such as an increase in tax on income from financial investments are being discussed without knowing in detail and clearly the impact that something like this could have on the stock market and the country's financial activities.
The cost of not making decisions about the serious fiscal problem affecting Costa Rica "is incommensurable and has the potential to affect not only the economic but also the social and democratic order of the country."
This is the emphatic and clear position of the Comptroller General of the Republic of Costa Rica regarding the serious and risky situation in which the public finances of the country find themselves.Furthermore, as is well mentioned in the report "Fiscal and Budgetary Evolution I semester 2018", published recently by the institution, if decisions related to solving problems of short-term liquidity and modifying the structure of public expenditure to the medium and long term continue to be delayed, the cost to the country will be much more than just economic.
Company has good bank relations, and no liabilities. Ideal way to acquire and accumulate assets and $$ with privacy. The company is registered to bid on government solicitations. 100% of shares available, will sell all or part. Company...
español
2138