American Expatriate Costa Rica

Government will borrow ¢1.4 trillion in the first half of the year

To meet the commitments budgeted in the first half of the year, the Government plans to issue debt for a total of ¢1.4 trillion (millions of millions).

Of that amount, the National Treasury has already placed ¢458,000 million for Ministry of Finance informed during the presentation of the Indebtedness Plan for the first half of the year.

The Treasury forecast is that half of the amount be placed in fixed-rate property titles in national currency. Another 25% would be placed in property titles in dollars. About 10% would come from variable rate property titles and 15% of the resources would come from “zero coupon” titles.

The Treasury seeks to consolidate series of debt bonds with maturities of three, five, seven, and 10 years. Silvia Jiménez, investment manager of the Stock Market stock exchange stressed that the trillion colones that remain to be placed would have to be made in the local market, in the absence of a clear option to bring resources from abroad.

There is still no external option. Clearly (the Treasury) is promoting placement contracts to seek resources from outside,”

added Jiménez. These contracts could be used until September this year.

In May, the Treasury will have to face the expiration of a commitment with an international bank, so it must seek resources to cover this obligation.

crhoy.com