At the end of August, the government of Costa Rica announced its request to IMF for a $1.75 financing under an Extended Fund Facility. But the administrations' reform plan that was created to obtain the funding caused a negative reaction from the public; during four days, there were protests against tax increases. After that, Costa Rica's president, Carlos Alvarado, repealed the tax measures on Sunday, October 4. Consequently, IMF postponed negotiations with the country.
Amid this news, Costa Rica's Eurobonds are falling:
6.125% 19feb2031 security has moved from Friday's close (October 2) of 94,258% to 92,155% on Tuesday, October 6.
Longer-term bonds decreased more significantly, for instance, 7.158% 12mar2045 note's price on Tuesday equaled 88,534% versus 91,259% on Friday.
The price figures correspond to the latest data of the Luxembourg Stock Exchange.