Costa Rica government resorts to central bank financing
Government to use Treasury bills to finance growing deficit as public sector workers go on strike
The Central Bank of Costa Rica agreed to buy Treasury bills worth $861 million on September 25, close to 5% of the 2018 national budget.
The Treasury bills are an instrument of “temporary and extraordinary” financing from the central bank to the government, a statement says. The Ministry of Finance stresses the emergency measure will be used only as a “financial bridge” while other operations are completed.
The Treasury bills will have a term of 90 days and an interest rate corresponding to
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