Global bonds allocation in sight
As we noted in our last monthly report, the Ministry of Finance is preparing to issue and allocate global bonds in the international market. The information was provided yesterday by Minister Donald Guerrero, who also indicated that the unusual delay in the placement of the 2019 bonds has been due to the volatility that has prevailed in the market associated with the trade tension between China and the United States. Congress authorized financial sources for up to USD 4.45 bn for the 2019 budget, of which USD 3.05 bn should be external financing and, out of that, USD 2.25 bn should be from issuances of global bonds. However, Congress also authorized the government, should it deem it necessary, to increase the amount of global bonds issued, provided that the cap for total financing is maintained.At this moment it is still unclear the amount that will be issued for the planned allocation.