After reducing the minimum amount for individual investors, the Guatemalan government has announced that between May and June it will begin with the issuance of $14 million.
For the current fiscal year, authorities have changed the minimum amount for an investor to acquire public debt bonds in the local market, reducing it from $3,000 to $1,300.
In the view of Fitch Ratings, despite the high level political noise of the past three years, economic growth has proved relatively resilient, supported partly by favorable external U.S. demand and strong worker remittances flows.
From a report by Fitch Ratings:
Fitch Ratings-New York-17 April 2018: Fitch Ratings has affirmed Guatemala's long-term, foreign-currency (LT FC) Issuer Default Rating (IDR) at 'BB' with a Stable Outlook.
The government issued $1.2 billion worth of debt securities in the international market, maturing in 2050 and with a coupon of 4.5%.
From a statement issued by the Ministry of Economy and Finance:
April 9, 2018.The Republic of Panama entered the international markets today throughthe issuance of a new Global Bond with maturity in 2050 for an amount of $1.2 billion and a coupon of 4.50%.
In Guatemala, the Ministry of Finance has reduced the minimum amount for an investor to acquire public debt bonds in the local market, from $3,000 to $1,300.
The Morales administration intends to continue throughout 2018 with the issuance of Treasury bonds aimed at small investors, but from now on with a smaller amount, in order to broaden the scope for potential investors.
The institution highlights the progress that has been made in reducing the fiscal deficit and stabilizing the debt, but warns that a greater effort is needed to place the debt on a downward trajectory.
From a statement issued by the International Monetary Fund:
In the local market, an issuance was made of a fixed-rate security with maturity in November 2021 and 216 billion in securities in colones, with terms ranging from 2020 to 2029.
In a statement, the Ministry of Finance reported that"...The issue in colones raiseda total amount of ¢216,205.83 million, in different titles with maturity from 2020 to 2029, associated with fixed and variable rate coupons (Sovereign Adjustable Real) anda fixed rate in dollars with expiration in November 2021, in which $514.82 million was raised; assigned to 15 participants."
The Ministry of Finance is considering issuing up to $500 million in debt securities in the Chinese securities market, in order to take advantage of the lower borrowing costs offered by the Asian market.
The advantage is that, according to Minister Dulcidio De la Guardia, " ... after changing the money to dollars, it is possible that the country could reduce by a quarter or half a percentage point the rate it would need to pay for a bond in dollars with equivalent maturity."
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.
As of January 31, 2018, the total balance of the Panamanian government debt totaled $23.384 billion, 7% more than was registered at the end of the same month in 2017.
According to data from the Ministry of Economy and Finance, between January 2017 and 2018, public debt rose from $21,852 million to $23,384 million, which is explained by growth of both external and domestic debt, which increased in equal proportion.
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."
The key factor driving the rating upgrade is the significant reduction of the government liquidity risks, as political agreements have led to Congress´approval of long-term government financing and pension reform.
Risk rating firm Moody's announced on Friday, February 23 that El Salvador's debt was rated B3, which represents an improvement from the previous rating of Caa1.However, the country is still considered an issuer with risk of not fulfilling its obligations.
Lack of fiscal reform continues to erode Costa Rica's public finances, constraining its long-term growth prospects and highlighting its vulnerability to external shocks.
Standard & Poor's has maintained the rating of B+ for long-term sovereign debt, arguing that economic growth is stable and the burden of public debt remains moderate.
The Caribbean country issued $1 billion on the international market for a term of 30 years and at a rate of 6.5%, and another $822 million with a 5-year term and a rate of 8.9%.
Dominican authorities reported that the country issued for the first time in the New York market, a 5-year bond issue for $822 million, and another, also in dollars, at 30 years and for $1 billion.
Between today and February 14 the Ministry of Finance in Costa Rica will go to the local market with the goal of issuing $290 million, at a rate of 7% and maturing in 2019.
In its constant search for fresh resources to meet the interest payments on its growing debt as well as its current expenses, during the next few days the Ministry of Finance will return to the market to try to raise $290 million, through the issue of government debt bonds.
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