To ensure financing for its future functions, the Costa Rican government will seek loans from the World Bank, IDB, CABEI and CAF during 2020, and plans to insist on the approval of $4.5 billion in Eurobonds.
For this year, the Costa Rican government plans to continue negotiating loans for budget support with the World Bank, the Inter-American Development Bank (IDB), the Central American Bank for Economic Integration (CABEI) and the Andean Development Corporation - Latin American Development Bank (CAF).
In Honduras, Congress approved the creation of the Social Interest Housing Bond, which will be a state contribution in cash or in kind, and may not be less than 11% of the value of the home to be purchased or rented.
According to Article 18 of the law, to access these bonds, the Secretariat of Housing and Human Settlements (SEVIAH) will prioritize access to the bond and housing care for households with incomes less than or equal to four (4) Minimum Wages, at its highest scale in force, Congress reported.
On November 12, the debt securities were sold in the international market, and at the end of the negotiation, bonds were issued for $1.2 billion maturing in 2031 and $300 million maturing in 2045.
The negotiation of the public debt issued by the government of Costa Rica in the international market closed at noon on November 12, and the yield for those maturing in 2031 was 6.25% and for those expiring in 2045 was 7.25%.
Standard & Poor's has given a B+ rating to the $1.5 billion debt issue that Costa Rica expects to place in the international market in November.
"Global Ratings today assigned a "B+" rating to the prospective reopening of Costa Rica's notes which have a 7.158% rate maturing in 2045 and a "B+" rating in its planned issuance of notes maturing in 2031, the latter issue still does not have a defined trading rate," the rating agency said on November 8.
Fitch Ratings kept in B+ with a negative outlook, the sovereign debt rating, arguing that "the weaknesses in public finances are reflected and the political stagnation has prevented the timely approval of reforms that address these problems."
The new fiscal rule has not been approved, and the Congressional authorization requirement for foreign loans periodically restricts Costa Rica's financial flexibility, is another of the risk qualifier's arguments.
Costa Rican authorities informed that Citi Global Markets and HSBC Global Banking will be the placement banks and financial advisors that will accompany the country in the process of issuance of securities and management of liabilities in the international market.
The issue that will be made at the international level is the one that was approved on July 16 through Bill No. 21.201, which authorizes the Executive to administer, issue and manage financing operations in the international market for up to $1.5 billion (one thousand five hundred million U.S. dollars).
The Ministry of Finance plans to present a new bill in the Legislative Assembly to issue $4.5 billion in foreign debt bonds next year.
The amount that will be requested is what is needed to reach the $6 billion that was requested this year before Congress, of which only $1.5 billion was authorized.
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 Ministry of Finance Awarded Treasury Bonds in local currency for $12 million, at a cut-off rate of 6.45% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public biddings and auctions ascended to Q.18,179.65 million ($2.360 million), corresponding to Fiscal Year 2019, of which Q.19.01 million ($2.46 million correspond to the awards of Treasury Bonds for small investors), informed an official source.
Although the goal for this year was to issue $100 million in debt bonds, during the first quarter the Nicaraguan government only awarded $1.1 million, doubting the level of investor confidence.
The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $19 million, at a cut-off rate of 6.46% and maturing in November 2039.
The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including the awards made through public tenders and auctions ascended to Q.18,083.29 million ($2.348 million), corresponding to Fiscal Year 2019, informed the government.
According to official statistics, the balance of public external debt up to June 30, 2019 was of 6,057.0 million dollars, which represented a 46.0-million-dollar increase regarding the balance registered in the previous month (US$6,011.0 million). In comparison with the balance to December 2018 (US$5,949.6 million), this represented a US$107.4 million increase, as a result of disbursements of external loans to the month of June for US$203.3 million, mainly from multilateral institutions (US$166.5 million), and principal payments of contracted debt for US$103.0 million.
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