Sunday 13 June 2021

ICE Reports 1st. Quarter Loss Of ¢33 Billion Due To Exchange Rate Fluctuations

The loss by the state entity is due to changes in the U.S. dollar and interest payments, like many in Costa Rica that have income in colones and debt payments in dollars

ICE reports loss due to income in colones and debt in dollars

Q COSTA RICA – Like many in Costa Rica whose income is in colones and debt in U.S. dollars, the state power and light company, the Instituto Costarricense de Electricidad (ICE), has been affected by the exchange rate policies of the Central Bank.

With the rise in the price of the dollar and the consequent payment of interest on its loans, ICE reports an accounting loss of ¢33.4 billion colones (US$58.6 million dollars) n the first quarter of the year.

- Advertisement -

The negative balance almost quadruples that reported ¢6.9 billion loss in the same period of 2016. The interannual increase between the two figures represents a variation of 380%.

The weakest quarterly performance was due to the cost of currency fluctuations (depreciation of the Costa Rica Colon against the American dollar), causing an increase in spending.

For example, in the first quarter of 2016, ICE made a debt payment of ¢5.8 billion, but this year the debt service payment increased to ¢ 24.3 billion (four times more) due to the exchange fluctuations.

On July 31, 2017, the Fitch Ratings issued a rating report on ICE, where it noted the company’s exposure to currency fluctuations due to the structure of its debt, affirming the national scale rating as ‘BB’ in local and foreign currency, with a Stable Outlook.

- Advertisement -

- 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

Are the days of the US dollar below ¢600 no more?

QCOSTARICA - The last time we saw the dollar exchange below...

Central Bank intervenes to remove upward pressure on dollar exchange rate

QCOSTARICA - The Banco Central (Central Bank) increased its presence in...


Direct flight will connect Guanacaste with Austin starting in November

QCOSTARICA - American Airlines announced that starting November 2, 2021, it will offer a direct flight between Austin, Texas and the Daniel Oduber International...

Puntarenas is the only province with a covid-19 infection rate greater than 1

QCOSTARICA - Puntarenas is the only province in the country that has a contagion rate or "r" rate greater than 1. This is detailed in...

Today’s Vehicle Restriction: June 12, “ODDS”

Today, Saturday, June 12, only ODDS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Parking lots, a bull ring and shopping centers among the vaccination centers on Saturday

QCOSTARICA - Vaccination centers against covid-19 were transformed this Saturday to be able to vaccinate more people. Universities, civic centers, parking lots and even...

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...

Should the vaccination against covid-19 be opened?

QCOSTARICA - Six months after the start of vaccination against covid-19, will it be time to open the campaign to those who want to...

Which countries could follow El Salvador by making it legal tender?

Q24N - El Salvador may be the first country to adopt bitcoin as legal tender, but recent developments suggest that it might not be...

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,...

COVID vaccines in the workplace: Can I ask who got their shots?

(DW) Jon works for the local government in the US state of Virginia. The 40-year-old received both his COVID shots in April. Most of...


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.