Senator Bautista Rojas Gomez (PLD-Salcedo) has warned that the present policy of taking out new international loans is a “very dangerous” turn. He said that at this pace foreign debt payments would be 25% of the total National Budget by the end of this year. Rojas Gomez said he overheard Technical Secretary of the Presidency Rafael Calderon and Senator Jose Rafael Abinader (PRD-Santiago) talking about US$700 million in emergency loans to cover deficits and strengthen the monetary reserves. He expressed his concern because he said President Mejia has spoken of the immense debt capacity of the country. He said those that seek the loans are not taking into account the payment capacity of the country. He said that 20% of the budget is already going towards foreign debt. If the borrowing spree continues, he predicts the government will end the year with an additional US$1,600 million in foreign debt that today is already a burden at US$4,000 million. He says Congress has approved US$700 million in financing. And if the government goes ahead and issues the US$500 million in sovereign bonds plus another US$200 million in emergency funds, this would bring the total to US$1,400 million, without taking into account other loans being discussed. He pointed out that to use 80% of the budget for current expenditures and only 20% for investment is a totally illogical economic policy and is contrary to the development of the country.
