Costa Rica charts return to global bond market

Costa Rica charts return to global bond market

Bonds Capital Markets Corporate & Sovereign Strategy Economy & Policy Costa Rica

Costa Rica’s government plans to seek congressional approval to issue debt in international markets after lawmakers pass a series of fiscal reforms, said Melvin Quiros, the country’s head of public credit.

The government hopes the fiscal reform package will be approved in Congress before the end of the year, Quiros said. It is intended to help reduce Costa Rica’s budget deficit, which is projected to reach 7.1% of GDP by the end of the year.

Once the fiscal reform is passed, Quiros said the government is considering requesting Congress to allow the government to issue up to $1bn a year in international bond markets over a four-year period.

"The earliest we would consider tapping the markets would be early 2019, but it obviously hinges on market conditions, whether we’re able to lower our country risk and improve our fiscal situation," he said.

Costa Rica last tapped the global bond markets in 2015, when it issued $1bn in 7.158% 30-year bonds.