Listin Diario reported on Saturday that the government in 11 months has had Congress pass US$586 million in loans, most with foreign commercial banks. The ruling PRD party is majority in the Senate. Pending for congressional approval is US$500 million in sovereign bonds, and another US$200 million Interamerican Development Bank loan requested by the Central Bank to strengthen the balance of payments, among other loans. The passing of these loans would mean the Mejia administration has increased the nation’s foreign debt by about 25% in its first year. When asked about the borrowing, President Hipolito Mejia told the Listin Diario that the government would not take out any more new loans as of next year.
