As at 30 September 2017, the public sector non-financial debt (SPNF) was US$29.06 billion accounting for 39.4% of the Gross Domestic Product, (GDP), according to statistics from the General Department of Public Credit, a Ministry of Hacienda division.
The report explains that the SPNF is made up of 64.91% for external debt, or US$ 18.86 billion, whereas the remaining 35.09%, some US$10.19 billion is internal debt.
The report explains that the total internal debt includes US$2.77 billion that is debt taken on by a government institution with another such entity, such as the international bonds issued by Central Government for the recapitalization of the Central Bank.
Economist Henri Hebrard stated that the problem would become unsustainable if the country is unable to find more lenders. But he noted that so far this has not been the case.
However, he did say that the government recognized that it did not have sufficient revenues to combat socioeconomic inequality, spur robust economic development of the country while still remaining competitive.
Hebrard stated that the investment in infrastructure would improve the level of competitiveness and that the country must improve its economic growth and hence the level of income.
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Diario Libre
14 November 2017
