High cost of bond placement

[NewsWhore]

The US$750 million in sovereign bonds recently sold in New York will cost the country US$5,625,000 a year in interest payments. These payments will be made every six months and will total US$2.8 million. This means that over the 11-year life cycle of the sovereign bonds, the government will pay US$58 million in interest. Since the government was authorized to issue up to US$1 billion in bonds, it can still place the remaining US$250 million sometime in the future, probably on the London bond market, according to El Nuevo Diario. The newspaper says that the money from the bonds would be spent on highways, bridges, rural roads, aqueducts, hospitals, schools, polytechnic schools, and "other community projects".

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