China Buys us$150 Million of
Costa Rican Bonds
China bought a second batch
of bonds of Costa Rica's internal debt for US$150 million,
signalling a new rapprochement between the two countries, the
Ministro de Hacienda said Monday. With the purchase, China completes
its commitment for the us$300 million dollars bonds purchase.
"The People's Republic of China has purchased the second part of
bond debt for us$150 million, under conditions similar to those of
the first tract: a period of twelve years, with semiannual interest
payments and a 2.0 per cent rate," the ministry said.
"We are delighted to have completed this second transaction under
the same conditions we made last year, following the same procedures
that were analyzed and endorsed by the General Accounting Office,"
said minister Guillermo Zuniga.
The first us$150-million purchase of bonds in Costa Rica last year
caused controversy after it was disclosed they had been purchased by
China, which had not been initially revealed.
The debt bonds were purchased by China as part of agreements to open
diplomatic relations, after San Jose in 2007 broke 60 years of
relations with Taiwan, which Beijing considers a rebel province
awaiting reunification.
Costa Rica became the first country in the region to establish
diplomatic ties with China on June 1, 2007.
The money "was entirely deposited in state coffers to finance major
expenses, including paying foreign debt that had been agreed to on
more onerous terms," the finance ministry said.
The two countries launched talks in January for a free trade treaty
under which the Central American nation hopes to export meat,
plants, fruit and coffee to the Asian giant.
China has spent tens of millions of dollars in bilateral aid
agreements, ranging from scholarships for university students in
Costa Rica to the building of a new stadium in San Jose.
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