Economist Miguel Ceara Hatton warned that the country’s credit could be shut down given the accelerated indebtedness undertaken by the government. He highlighted that borrowing in capital markets is on the rise, and the proportion of interest in the tax revenues is rising, or at least not dropping. He said the country is on a collision route if the indebtedness is not stopped.
“Part of the interest is being paid with new debt, which is almost a Ponzi or a pyramid scheme,” he said. “It is a challenge because the high probability of credit crisis occurring,” he said, during an interview with journalists Addis Burgos and Pablo McKinney of Enfoque Matinal, on CDN TV Channel.
The Medina administration has the record of debt-taking of the governments of Joaquín Balaguer, Antonio Guzmán, Salvador Jorge Blanco, Leonel Fernández.
Read more in Spanish:
El Caribe
Diario Libre
3 October 2018
