American Expatriate Costa Rica

Central Bank defends Eurobonds in the midst of doubts

In the midst of the fiscal crisis, domestic debt and high interest rates offered by domestic investors, the government asks legislators to approve the placement of bonds for $6 billion abroad. This is known as Eurobonds.

According to the government, its objective is to obtain better loan conditions than those offered in the country to face the fiscal crisis. This is because the recently approved tax reform will begin to generate really important results until the second half of 2019.

A group of legislators opposes the approval of this proposal. Instead, they offer to vote for smaller numbers like $1,500 million.

This would be the sixth time the government uses Eurobonds, the last time being in 2015.

Economist Eli Feinzaig does not see Eurobonds as the best option. He was invited to the show Enfoques where he said that while you can resort to this tool, the government should first limit spending.

The problem in Costa Rica is why we are spending so much and so badly,”

said Feinzaig.

crhoy.com