Monday 14 June 2021

Costa Rica Bonds Fall In Price After Latest Poll Of Fabricio Alvarado In The Lead

The University of Costa Rica (UCR) poll released on Tuesday revealing Fabricio Alvarado of the Restauración Nacional party in the lead with 17% of the support, has resulted in a drop in the price of Costa Rica bonds in dollars, which expire in 2023, according to Bloomberg.

Bond prices fall when they are less attractive to investors and those who are willing to buy them demand a higher yield because they consider them riskier.

- Advertisement -

La Nacion reports, “according to information released by the Bloomberg firm, and consultations with local analysts, there is a fear that a fiscal agreement will not be reached. There was some optimism that Alvarez (Antonio Alvarez, the candidate of the Partido Liberacion) would approve a comprehensive fiscal reform, and that is much less true now, Eurasia Group analyst Risa Grais-Targow said in a telephone call.”

Financial experts say Alvarado has been vaguer in his economic policy plans. “There needs to be a tax reform that addresses both the increasingly complicated revenues and expenses. The market is beginning to lose hope, and with that comes the pressure on bonds and currency,” said Andrew Stanners, a London-based money manager at Aberdeen Asset Management.

The Center for Research and Political Studies (CIEP) at the University of Costa Rica poll published Tuesday shows Alvarado leading, with populist Juan Diego Castro in second place and traditional party candidate Antonio Alvarez, the front-runner for most of the election cycle, slipping to third place.

It’s not just Bloomberg showing concern, Moody’s warned foreign investors on Tuesday about the political difficulties facing the next government of Costa Rica to achieve a fiscal agreement, due to the fragmentation that is expected in the Legislative Assembly and the ability of a single legislator to put a halt to any such process.

- Advertisement -

The Fall has started and could continue. The Ministry of Finance (Ministerio de Hacienda) said the decrease could affect the sale of bonds for up to US$1.5 billion dollars through the domestic market, which would be purchased by foreign investors.

Deputy national treasurer, Mauricio Arroyo hid behind regulations of the Sugeval (Superintendencia General de Valores) – General Superintendency of Securities – denying information about the placement of the bonds.

“The only thing that we can indicate is that the prices of domestic debt securities, by their nature, behave differently from the prices of the external debt bonds referred to in the note,” said Arroyo.

- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

IMF-Backed Bill Sets Up Clash With Costa Rica’s Powerful Unions

(BLOOMBERG) Costa Rica is trying to rein in one of the...

Moody’s, Fitch and S&P distrust political support for plan with IMF

QCOSTARICA - The international risk rating agencies Moody’s, Fitch Ratings and...


The U.S. and Democracy in Nicaragua

Q REPORTS (Council on Foreign Affairs) Democracy is being destroyed in Nicaragua. This has been the long-term project of Daniel Ortega, the country’s dictator,...

Costa Rica cannot feel safe from covid-19 before having about 80% of population vaccinated

QCOSTARICA - No doubt, vaccines are one of the most powerful tools to maintain control of Covid-19, but when it comes to entire populations,...

Costa Rica will have a system to reduce marine pollution

QCOSTARICA - Costa Rica will have a system called "Interceptor" that will eliminate floating and suspended waste from the upper layer of its waters,...

Apple extended the life of its older iPhones

QTECH - Whether due to the global economic crisis caused by the Covid-19 pandemic or due to shortages of electronic components, raw materials, factory...

Central America is back in the news for the wrong reasons, Costa Rica is once again the exception

QCOSTARICA - Osta Rica has been the epicenter of regional diplomacy in recent days. The successive visits of the Secretary of State of the...

Quepos flooded by heavy rains (Photos)

QCOSTARICA - The residents of the Central Pacific endured heavy rains Monday afternoon, June 7, hardest hit the town of Quepos, where the streets...

Seven out of ten over 58 years have been fully vaccinated against covid-19

QCOSTARICA - The Caja Costarricense de Seguro Social (CCSS) reports that 70.3% of people over 58 years of age, the so-called Group 2 of...

Today’s Vehicle Restriction: June 10, “ODDS”

Today, Thursday, June 10, only ODDS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Nicaragua government assures that detainees violated one of the Ten Commandments

TODAY NICARAGUA – The vice president of Nicaragua and First Lady, Rosario Murillo, assured that those who feel persecuted are for the crimes they...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.