The government of the Caribbean country issued $1.3 billion in the international market for a term of 10 years and an interest rate of 6%.
This is the second issue that the Dominican Republic has made in the international market, as in the month of February it issued $1 billion for a term of 30 years and a rate of 6.5%, and another of $822 million for a 5 year term and a rate of 8.9%.
The government of Costa Rica announced that in the first semester it would issue up to $2.175 billion in debt securities in the local market, however, as of June it has already issued $3.633 billion.
In February of this year, the Ministry of Finance announced that in the first semester it would issue $2.175 million in debt securities through the auction mechanisms and electronic window in the local market.But according to data from the National Stock Exchange, from January to June, the amount awarded exceeded the initial estimates by 67%.
To avoid further pressure on local interest rates, the Ministry of Finance will be considering issuing $1 billion a year in the international market over the next four years.
Representatives from the Ministry of Finance confirmed that they are preparing an application to the Legislative Assembly to issue $4 billion in debt securities in the international market.
Between May 2017 and the same month in 2018, the country's public debt rose from $22.96 billion to $24.849 billion, which is equivalent to an increase of 8%.
According to figures from the Ministry of Economy and Finance of Panama, in the first five months of the year, the debt has also reported an increase, rising from $23.373 billion registered at the beginning of January to $24.849 billion calculated at the end of May, which represents a 6% increase.
The downgrade and Outlook change reflect increasing political instability and the corresponding deterioration of Nicaragua's investment, economic growth, and public finance outlook
From a statement issued by Fitch Ratings:
Fitch Ratings-New York-22 June 2018: Fitch Ratings has downgraded Nicaragua's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook is Negative.
In Costa Rica the 1.7% increase in revenues accumulated up to May was not enough to offset the 8% increase in total expenses.
From a statement issued by the Ministry of Finance:
June 21, 2018.The growth of 1.7% in total income accumulated up to May 2018, is insufficient to offset the variation of 8.1% of total expenses, 48% of which is due to the increase in interest.This behavior generated a primary deficit (difference between current income and total expenditure excluding amortization and interest) in the central government of 1.2% of GDP and a financial deficit of 2.6% of GDP, exceeding the figures observed in the same period in 2017 (1% and 2.2% respectively).
Citing a long history of fiscal and monetary policy characterized by prudent management, the rating agency Moody's maintained the country's credit risk rating in Ba1.
Moody's has changed the rating outlook from positive to stable, citing the economic impact of the rupture of the consensus model for a national dialogue.
From a statement issued by Moody's:
New York, June 13, 2018 -- Moody's Investors Service ("Moody's") has today changed Nicaragua's rating outlook to stable from positive and affirmed its B2 long-term issuer ratings.
Fitch Ratings has kept the debt rating in foreign currency at "B-", arguing that political tension has been reduced following the pension reform approved in October last year and the budget passed in January of this year.
Fitch Ratings-New York-13 June 2018: Fitch Ratings has affirmed El Salvador's long-term, foreign-currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook.
The Panamanian issue of $500 million in "Panda" debt securities could be made in the course of the second half of the year, in the Chinese capital market.
With this issue, the Panamanian government plans to take advantage of the most favorable financing conditions offered by the Chinese securities market, compared to the local market and even other developed markets.
Explained by obligations with national creditors, between December 2017 and March 2018, the debt increased from $6.487 billion to $6.727 billion, registering an increase of 3.7%.
The Central Bank of Nicaragua reported that as of March 2018 "...
El Salvador's Congress approved an IDB loan of $350 million to finance the government budget deficit at a 3.25% rate.
The president of the Legislative Assembly, Norman Quijano, stated that " ..." with the conditions offered by the IDB we will have an interest rate estimated at 3.25%, with the bonds we had an average rate of 7 and 8%, the reduction of interests will mean a saving of tens of millions of dollars for the country.' "
Due to the recent strike in the construction sector, the entity has reduced projections of economic growth for this year from 5.6% to 4.6%.
<span dir="ltr">However, recovery from the impact of the strike and the entry into operation of a large copper mine will lead to an upward revision of around one percentage point in the growth projection of 5.8% for 2019.
Although insufficient, the package of government spending containment measures proposed by the Alvarado administration is a good first step on the way forward to resolving Costa Rica's delicate fiscal situation.
The Minister of Finance, Rocio Aguilar, presented before the Legislative Assembly a plan to contain government spending that includes, among other measures, decreeing "...
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