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Friday, January 29th, 2016  |  USD: Buy 531.29 / Sell 543.92
20 years

Costa Rica looking to raise an additional $1 billion through international bond

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October 13th, 2014 (InsideCostaRica.com) Costa Rica is planning to raise $1 billion through a new international bond sometime in the first half of next year, Finance Minister, Helio Fallas told Thompson-Reuter’s IFR news agency on Friday.

 

Fallas said the country would prefer a long-term bond, but the report states that terms will “depend upon market conditions.”

 

Costa Rica’s most recent international bond issue, consisting of $1 billion in Eurobonds, occurred in April.

 

Costa Rica has more than $1.7 billion in previous bond issues coming to maturity in the first half of next year alone, and will need to refinance at least 61% of that amount with new debt in order to make good on its obligations, reports in September revealed.  Those figures only included bonds issued by the Treasury – The Central Bank also has bonds coming to maturity next year, though mostly in the second half.

 

The government also revealed last month that it was in the early stages of seeking a loan from the World Bank to cover its debt payments and fund government expenses for the first half of next year.

 

Finance officials at the time did not reveal the amount of the loan being sought, saying only that it would be similar to a loan taken by the country in 2009 for $500 million.

 

Costa Rica’s credit rating was cut to junk status by Moody’s Investors Service in September, based on the country’s widening deficit and large debt burden.

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  • disgusted

    So these are junk bonds If I understand it correctly. And CR borrows 61% of their budget, Coming due in 8 months. CR was asking forgiveness in the world banks a while back. Does not say who who be fool enough to buy them. Unless China does with the promise of owning this country natural resources. So CR owes 1.7 billion, Borrow another 1 billion plus in bonds. Meantime the Government here pays out huge salaries , pensions , perks and corruption. Costarricense here just like the USA borrowing and corrupting their childrens childrens future and beyond… Something got to give.

    I suggest CR allow mahiuana growers to grow and sell their product to the world market. Be the first Tax it pay off this debt. Colorado would buy it they are making a killing in profit for the state. It is better than killing all the sharks for their fins..

    • gunns

      Okay now how do i participate in a discussion fork spelling iIm news and con fused

  • prdatki

    Costa Rica should not get any money until it cuts from the top. Why does a person in Congress get $100 a day for food, free Cell phone, gas etc. Why do they get a huge retirement for just being in office for 4 yrs? The Elected and Appointed officials should get 50% reduction in pay 100% reduction in benefits and the ex officials should have to repay what they have received.Why does the Church get over Three Million dollars a yr. They should be taxed!

    • HONEST MAN

      Your right good luck on any changes happening in goverment PLN party hate cutting anything. Even there spoke person EX prez Oscar said no cuts. Things could get alot worse i see people starting to get really upset at goverment it could get very intresting in Costa Rica.

      • prdatki

        In that case Oscar should be hanged,lose his Nobel, and all of his money and assets. This might put fear in the PLN.

  • Yeims

    I seriously question the wisdom/intelligence of the government going farther into debt at a time when 1 ebola patient being discovered in the country will probably be enough to bring tourism to its knees within days after the announcement is made. Of course, the “tourists” from Nicaragua don’t count in this, but if the ebola arrives to Nicaragua, it is possible the victims might try to come to CR for treatment. (free, of course)

  • scottm

    Costa Rica, and Costa Ricans are looking at a very difficult 2015, 2016 and more than likely 2017. When the crisis hit and most governments around the world tightened their belts and got a tough lesson on the importance of a balanced budget. Good ole Oscar spent like there was no tomorrow and Laura kept it going. The rest of the world is working their butts off to cut costs, lower operating costs, get their governments somewhat accountable for their spending. The CR government just kept on spending. The incredible irresponsibility of the “politicos” and inability to understand simple math truly is astounding. CR is in for a rough ride over the next two, three years Hold on tight as it is not going to be a fun ride.

  • acwatson

    The only time in my life I seen a guy buy a car air freshener on his credit card,,,this country has some very hard times ahead with a youth population that has exploded…but hey,,,spend spend spend!!!!!

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