Costa Rica

Costa Rica’s legislative assembly on Monday approved the placement of up to $1.5 billion in bonds in coming months as the Central American country struggles to reduce its mounting debt burden, Reuters reported. Over the past 10 years, public debt in Costa Rica has doubled and now stands at about 53 percent of gross domestic product. The first tranche of the dollar bond debt issue will be placed in international markets from August, said Rocio Aguilar, Costa Rica’s finance minister. The government will have a year to complete the bond issue.

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Philippine Deposit Insurance Corp. took over the Rural Bank of Parañaque, Inc. after the central bank ordered its closure on Monday. The receivership order, which meant the responsibility of recouping as much of the bank’s unpaid loans has been transferred to the state deposit insurer, was stated in Monetary Board Resolution 1616 issued on Monday. Central bank records showed the bank, known for its double-your-money-time-deposit scheme, has a capital deficiency of P983.5 million as of July 2007. RBPI has 37,400 deposit accounts worth P5.4 billion, of which P5 billion is insured.
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