American Expatriate Costa Rica

The Ministry of Finance plans to borrow ¢ 950,000 million during the first half of 2017

According to Mauricio Arroyo, national sub-treasurer, the Ministry of Finance plans to borrow ¢ 950,000 million during the first half of the year.

Out of this figure, the Treasury already provided an important amount, that’s why they only need to obtain ¢ 684,000 million.

Placements will be made through domestic debt bonds. Indebtedness is the main financing source for the government’s fiscal deficit, which last year reached 5.2% of GDP.

Last year, the Tax Office had a 2-billion-colon debt. However, it origally planned to have a 1.8-colon debt.

The Executive has made an effort to guarantee that most of the debt it renews is made at a fixed rate.

The Tax Office plans to create a bill that allows it to directly borrow with lines of credit in order not to resort to the stock market to finance its operation.

On the other hand, the Central Bank aims to raise about 300,000 million, a figure much lower than the one it had in 2016.

Last year, the Bank placed only 572,817 million colones, 62% of the amount originally planned  (926,000 million colones).

crhoy.com