Costa Rica’s government announced today that Deutsche Bank and chose to Citigroup as banks responsible for the placement of foreign bonds known as “Eurobonds” by up to 4,000 million dollars.
Costa Rican Vice Minister of Public Credit, Juan Carlos Pacheco, announced today at a press conference that the Ministry of Finance has selected Citigroup and Deutsche Bank for its “experience” and “strategies” for the bond issue.
Costa Rica Congress authorized a couple of months the issuance of “Eurobonds” by up to 4,000 million, with a maximum of 1,000 million per year, then the Ministry of Finance started a competition for banks.
The aim of the Costa Rican authorities with these bonds is to replace internal funding deficit of external resources to lower interest rates in order to control the growth of the deficit and cause a drop in the base rate loans affecting population .
Costa Rican Minister of Finance, Edgar Ayales, said today at the press conference on legal issues can not reveal details of the bond issue, but months ago said the aim was to place at least $ 500 million in late 2012.
In the first 9 months of 2012 the fiscal deficit of Costa Rica reached 1,449 million, equivalent to 3.2% of gross domestic product (GDP), while the base rate is about 11%.
Costa Rica ended 2011 with a deficit of 4.4% of GDP, down from 5.2% in 2010, while for 2012 the official target is not exceed 4.5%.
The Costa Rica News (TCRN)
San José Costa Rica