2026News

Debt interest payments weigh heavily in 2026, economist warns

Henri Hebrard / Hoy

Economist Henri Hebrard issued a stark warning on Friday, 9 January 2026 that the Dominican Republic will need to spend approximately RD$1 billion daily solely on debt interest payments throughout 2026.

Speaking on the news program Uno más Uno (Teleantillas), Hebrard detailed that annual interest obligations have surged to roughly RD$360 billion. He described the figure as a critical red flag for the country’s financial stability.

Hebrard highlighted the scale of these payments by comparing them to vital public sectors. According to his analysis, the interest on the national debt now is triple the total deficit of the national electricity sector, is more than the national education budget and doubles the resources allocated to the healthcare sector.

“If there is one worrying figure for 2026, it is this: the debt interest commitment,” Hebrard stated. “The Dominican Republic must find RD$1 billion pesos every single day just to cover interest.”

The economist noted that the country’s fiscal deficit currently exceeds 3%, a threshold at which debt indicators typically begin to deteriorate, especially when coupled with a slowdown in economic growth.

Addressing the controversial topic of fiscal reform, Hebrard observed that while the public is generally more receptive to such changes during deep crises, there is still a window for negotiation. He urged the government to utilize the first half of 2026 to foster dialogue and build a national consensus on tax and spending policies.

Looking forward, Hebrard identified the construction sector as the essential engine for recovery. He argued that revitalizing construction is the only viable path to achieving a GDP growth rate between 4% and 4.5%, which he deems necessary to stabilize the economy.

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12 January 2026