Arguing that the country's fiscal and financial profiles have weakened, Standard & Poor´s downgraded from B to B- the negative outlook for Nicaragua's foreign currency debt.
The negative outlook reflects a greater than one of every three probabilities of a downgrade in the next 12 months because of possible additional pressure on the balance of payments or the domestic financial system in dollar terms, given the government's limited foreign exchange financing options.
At the end of 2018, the Costa Rican government needs about $1.5 billion to pay salaries, transfers and debts to state creditors.
According to Rocio Aguilar, head of the Treasury Department, there is currently just over half of the resources needed, which totaled $3 billion.
Aguilar explained to Crhoy.com that there are possibilities that "... The debt issuance contracts will allow them to obtain those resources from here to the end of the year, to successfully close 2018."
The 2019 budget approved by the National Assembly includes almost $9 billion for investments and $2.943 million for debt service.
Panamanian authorities informed that the approved project includes an adjustment of 350 million balboas additional to the budget initially budgeted by the Ministry of Economy and Finance (MEF).
At the end of the third quarter of 2018, Nicaragua's public external debt totaled $5.771 million, 4% more than that reported at the end of 2017.
The Central Bank of Nicaragua (BCN) reported that public external debt totaled US$5,771.3 million, representing a net increase of US$49.5 million over the previous month.
Arguing a moderate fiscal deficit, low level of public debt and an improvement in the country's external position, Standard & Poor´s kept the country's credit risk rating at BB-.
In the first of the two days of the swap of debt securities convened by the Finance Ministry of Costa Rica $202 million were successfully negotiated, amount that represents only 6% of the total balance expected to exchange.
To swap debt securities that expire between 2018 and 2020, for others with longer deadlines, the Government of Costa Rica organized an auction on October 25 and 26.
The Finance Ministry of Costa Rica organized an auction on October 25th and 26th, to swap debt securities that expire between 2018 and 2020, for others with longer deadlines.
The Finance Ministry is the institution that called for a " mega swap ", which aims to offer investors new securities that expire between 2021 and 2030, up to a total of ¢2 billion ($3,426 million).
The Nicaraguan government authorized the Finance and Public Credit Ministry to issue $279.7 million in debt securities to cover the budget deficit.
The presidential agreement details that "In order to comply with the provisions of Article 6 of Law 978; Amendment Law to Law 966, Annual Law of the General Budget of the Republic 2018, increasing internal financing through greater issuance of bonds of the Republic of Nicaragua for a total of C$9, 035,600,000."
The budget presented by the Salvadoran government for next year will be 23% higher than in 2018 and increases to $1.613 million the gap to be financed.
The Salvadoran Foundation for Economic and Social Development (Fusades) reported that the draft National General Budget 2019 (PP2019) totals US$6,733.2 million, an increase of US$1,265.7 million (23.1%) over the voted budget 2018 and is equivalent to 24.9% of the gross domestic product (GDP) 1. This is the amount that has been budgeted for the Central Government for 2019, which shows a significant increase with respect to the 2018 voted budget and the gap to be financed is greater, since it will need financing in the order of US$1,612.5 million.
The decline in tax collection, the government's short-term commitments and the possibility of a reduction in the credit rating are factors that worsen Costa Rica's fiscal situation.
According to figures from the Finance Ministry, during the first nine months of this year the tax collection of the Costa Rican government had a slight increase of 1% over the same period last year. This increase is far from the interannual increases reported in the same period in recent years.
The Panamanian government issued $550 million of sovereign debt in the international market, expiring in 2050 and with an average yield of 4.92%.
According to information from the country's authorities, the resources collected will be used to partially finance the investment plan contemplated in the General State Budget for fiscal year 2018.
Moody's downgraded the long-term issuer ratings and the Costa Rican government's unsecured bonds.
Yesterday the risk rating agency reported that expectations of a continued decline in fiscal indicators and evidence of increased financing needs are some of the reasons behind the decision to revise the country's debt rating.
Rocio Aguilar, Finance Minister, explained to Crhoy.com that Moody's warning is "...
The representatives of the Supreme Court of Justice of Costa Rica are more concerned with defending their unacceptable privileges than with performing impartially and morally the work for which they were appointed.
EDITORIAL
Arguing that the Tax Reform approved in the first debate in the Congress imposes spending containment measures on the salaries of the Judiciary, the judges of the Supreme Court of Justice announced that they will oppose the reform if the points that affect the operation of the institutions of the Judiciary, in their opinion, are not abolished from it.
The Sanchez-Ceren administration plans to issue $800 million in debt securities to repay obligations that will expire next year and another $1.407 million to complement the 2019 national budget.
The Ministry of Finance presented to the Congress next year's Budget project, which includes, among other aspects, adjustments to the fiscal deficit that the government will register next year.
Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.
According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.
Regarding the country's indebtedness level, Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to Dca.gob.gt that "... It is interesting to note that, although Guatemala reports the lowest level of debt in the region and one of the lowest in the world, the evaluation given by risk rating agencies does not reach investment level. This is a product of political instability but, especially, it is due to the limited size of its fiscal revenues."
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