...Regulation on External Funding Principals: An amendment to Law 4749 on Debt Management and Borrowing Principals allows for a repayment guarantee from the Treasury on bond issues from public administrations according to Law 5018, local governments (metropolitan municipalities, municipalities and local government agencies), their affiliated establishments, majority-owned agencies, state-owned investment and development banks, state-owned enterprises and funds in the external capital markets. Treasury Repayment Guarantee: Treasury-backed subnational bonds are only to be issued for funding purposes in foreign capital markets, and the guarantee covers 100% of interest and principal for the full term of the issue. The Treasury may charge a guarantee fee of up to 1% over the guaranteed amount, taking into consideration such criteria as: financial strength; the debt servicing performance of the entity in the case of existing Treasury-backed bank loans; and the conditions of the guaranteed funding....
