Sunday 4 June 2023

Slowly but surely, Costa Rica bond issue heads for port

US$1.5 billion placement will have major impact on exchange rate and reactivation

Paying the bills


Ortega green lights arrival of military personnel and aircraft from Russia, Cuba, and Venezuela

Q24N (EFE) Daniel Ortega, the president of Nicaragua, has...

What reasons for businesses to choose newer office spaces in Costa Rica?

Q COSTA RICA  - The demand for high-tech office...

Gas price hike approved; diesel dropping

Q COSTA RICA - The regulatory authority, the Autoridad...

We’re in for a wet Friday!

Q COSTA RICA - We're in for a wet...

Stepping on a scale before boarding?

Q24N - Take off your shoes. Take the keys...

Man sentenced to 35 years in prison for murder of ex-wife

QCOSTARICA - The Criminal Court of Santa Cruz, Guanacaste,...

Dollar Exchange

¢537.33 BUY

¢545.84 SELL

3 June 2023 - At The Banks - Source: BCCR

Paying the bills


The government of Carlos Alvarado is making progress in its efforts to place a US$1.5 billion bond in international markets, known as Eurobonos (Eurobonds).

The placement will have major consequences for the exchange rate, interest rates and the whole process of the reactivation of the economy.

Would it help to revive the economy?

- Advertisement -

That is what the Treasury is betting on; Government financing needs became too large for the local market, and they are pushing up what everyone else pays, including local people and businesses.

“The placement of the Eurobonos has not yet been made and none of the multilateral credits have been approved by the (Legislative) Assembly; that is to say, the arrival of external resources has not materialized, but if they were in effect and we perceived that the space exists, it would be an opportunity that would allow us to reduce the cost of financing,” explains Rodrigo Cubero, president of the Central Bank of Costa Rica (BCCR).

As a result, La República tries to respond (in Spanish) to the concerns and doubts that exist about the process and its impact on the domestic market.

This is not the first time Costa Rica places bonds in the European market, in the last seven years, it has placed US$4 billion dollars, with terms from 10 to 30 years and rates ranging from 4.25% in 2012 to 7.15% in March 2015.

The latest Euronos:

  • November 2012, US$1 billion dollars, 10 years at 4.25%
  • April 2013, US$500 million dollars, 12 years at 4.37%
  • April 2013, US$500 million dollars, 30 years at 5.63%
  • April 2014, US$1 billion dollars, 30 years at 7%
  • March 2015, US$1 billion dollars, 30 years at 7.15%
- Advertisement -
Paying the bills
Avatar photo
"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

Year-on-year inflation in Costa Rica decreased in April and stood at 2.44%

QCOSTARICA - Interannual inflation in Costa Rica reached 2.44%, which represents...

Costa Rica lost 16.2% of competitiveness due to the drop in the dollar exchange

QCOSTARICA - The loss of competitiveness is evident during the last...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

%d bloggers like this: