Economists Miguel Ceara Hatton and Ernesto Selman said that the rising US$30 billion debt, lack of jobs and distortions in the production model are obstacles to increased investment and economic development. In interviews with the Corripio Communications Group, the economists said that the rising debt is a matter of the rising concern. They commented that 91% of the interest payments due in 2014 are being paid with new loans the government is taking out. “Not only are we paying the capital with new debt, but also the interest,” said Ceara Hatton. He said this is money that is being wasted as the government is borrowing not for anything productive, but just to pay interest on previous loans, as reported in Hoy.
The government debt today represents 45% of the GDP.
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