July 23, 2020 |
Government could issue $500 mln in new notes to cover late payments that exceed $3 bln
Ecuador's Finance Ministry plans to offer $500 million in bonds to settle late payments to vendors that rose above $3 billion in the first half of the year, according to local press reports.
The bonds will mature in three, five, seven and 10 years and carry interest rates of 4.5% to 6.7%, local press quoted Deputy Minister Fabián Carrillo as saying.
Public and private vendors can choose to receive payments in bonds and sell the notes in the secondary market, Carrillo reportedly said.
A source at Ecuador's Finance Ministry, said the government has not determined the exact maturities for the bonds, but he added that the notes, known as Cetes, are short-term securities that come due in less than 360 days.
According to a statement from the ministry, the government has issued $937 million in Cetes to cover late payments to suppliers.