Costa Rica Prepares $4 Billion Debt Plan

Costa Rica expects congressional approval within a month to sell as much as $4 billion in bonds abroad and plans an offering of at least $500 million by November, Vice President Luis Liberman said.

Monday, June 18, 2012

The country is preparing its first international issue since 2004, aiming to reduce the fiscal deficit which has already reached 5% of GDP.

In an interview with Bloomberg, Vice President Luis Liberman said they don't want to saturate the local market, and that the President will not reintroduce a new version of the tax package rejected by the Constitutional Court in April.

If approved, the borrowing plan would authorize the Executive to issue up to $4 billion in international bonds over the next 10 years, with a maximum of $1 billion per year.

More on this topic

Costa Rica: $500 million in Treasury bills

March 2012

The government of Costa Rica is seeking funding for infrastructure projects, taking advantage of low rates in the international market.

Costa Rica has plans to place bonds for at least $500 million for development and infrastructure projects, probably in certificate with 10 year terms, said Finance Minister Fernando Herrero.

Costa Rica Could Issue Bonds worth $4 billion

May 2012

The annual amount cannot exceed $1 billion in order to avoid the placement of debt in a single issue.

The Economic Affairs Committee of the Legislative Assembly gave its approval to a motion that seeks to double the maximum amount of foreign bonds that the Government may sell, going from $2 billion to $4 billion, said Rep. Patricia Perez, president of the commission.

Costa Rica to Finance 45% of its Budget with Loans

September 2011

Uncertainty about approval of the tax package in the National Assembly makes the national debt situation unsustainable.

The General Budget of the Republic for the Fiscal Year 2012 was presented by Finance Minister Fernando Herrero, who admitted that 45% of the $11,500 million to be financed will be provided by issuing public debt.

Costa Rica to Offer $1.165 billion in Bonds in 2nd. Quarter

April 2012

The Ministry of Finance intends to place majority of the certificates in the medium and long term, "in order to improve the maturity profile and reduce the risk of refinancing".

The Treasury sold bonds in the domestic financial market for about $1.073 billion during the first quarter of 2012, and in the second quarter plans to place $1.165 billion, reported Misfinanzasenlinea.com.

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