During February 8 and 9, the Ministry of Finance was able to renegotiate close to $130 million corresponding to maturities of domestic debt securities for the years 2021 and 2022.
This is the first exchange of domestic debt in colones to take place in 2021.
Through a competitive auction of domestic debt securities denominated in Colones, on November 9 the Costa Rican government issued the equivalent of $106 million in the primary market maturing in 2024, $81 million in 2026 and $27 million in 2031.
With this allocation the Treasury reached 80.6% of the maximum amount of issuance for ¢1.8 billion, announced last August 25, during the presentation of the debt plan for the second half of the year, the authorities informed.
After the Alvarado administration agreed to backtrack on the proposal to negotiate a $1.75 billion loan with the IMF, it is predicted that next year the government will depend on domestic debt to finance its expenditures.
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 aim of the government's debt plan for the second half of the year is to capture up to $2.43 billion in the local market, in addition to the $1.5 billion expected to be placed in the international market.
In its strategy for the coming months, the Government will manage liabilities (swaps and reverse auctions) for the series maturing in both colones and dollars.
In the exchange of foreign currency debt that took place on February 6, the Ministry of Finance managed to negotiate $165 million of $428 million offered.
Grupo Prival reported that the debt that was swapped expired in 2019, 2020 and 2021, and now the bonds will expire in 2023 and 2026, which will give more looseness to the authorities to manage the country's public finances.
The financial deficit of the Central Government at the end of last year was equivalent to 6% of the Gross Domestic Product, 1.2% less than originally expected.
According to the authorities, the fiscal deficit as a proportion of GDP was lower than expected because of the measures taken in terms of collection, expenditure containment and efficiency, and the approval of the Law to Strengthen Public Finances. See "Tax Reform: First Step" and "Ambitious Plan for External Debt"
Because of fiscal uncertainty, in the first months of 2018, banks operating in the country reduced by 16% the amount invested in public debt securities in the local market.
Against the backdrop of doubts about the future of public finances in Costa Rica, it was reported that from January to September, 14 local public and private banks invested $3.190 million in government bonds.
The Ministry of Finance reported that $200 million of the bonds placed in the domestic market were "in firm" and another $400 million placed to the best effort.
The Ministry of Finance reported that because of Direct Contracting No.
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 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.
Arguing that the financial conditions and the term of the operation were not adequate, the Ministry of Finance has decided not to issue $1,5 billion in debt bonds in the local market.
The announcement was made by the Ministry of Finance through a Relevant Fact sent to the General Superintendence of the Securities Market.
During the first semester, the government plans to issue up to $2.175 billion in debt securities through auction mechanisms and electronic windows in the local market.
According to the plan presented by the Ministry of Finance and the Central Bank, the debt figure "... contemplates issues through the mechanisms of auctions and electronic windows. This amount does not include loans made through internal debt placement contracts or debt swaps. In liabilities management, the plan is to continue swaps and reverse auctions."
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