(QCOSTARICA) In the second half of the year the Ministry of Finance (Ministerio de Hacienda) plans to raise on the local market US$1.8 billion dollars, 10% of what was raised in the same period in 2014.
Without solving the underlying problem of high public spending, the government is sticking with its strategy to issue debt in the Costa Rican local market, which not only increases the already swollen government debt, but also influences the structure of interest rates in the local market, pushing them up to compete for funds with other local market participants.
A statement from the Ministry of Finance states that “… For the second half of the year, the Treasury is planning a gross placement of ¢980 billion colones, of which it has raised around 8%, due to the auction on July 6 for a total of ¢78.8 billion colones. ”
Officials said that most of the issue scheduled for the remainder of 2015 will be a fixed rate.
The statement added that “… In regard to the first six months of the year, the Ministry achieved a placement of ¢ 1,139,143 million through auction mechanisms and electronic windows, very close to the total amount announced for the first half 2015, ¢1.1 billion. Of the total issued, 78.3% were fixed rate loans and securities in terms of term to maturity, 31% was for a period equal to or greater than 10 years.”
Article by Centralamericandata.com
