Former Minister of Finance Daniel Toribio has warned that at the pace Congress is approving loans, the foreign debt could increase by US$2.2 billion by the end of this year. As of December 2000, the foreign debt was US$3.67 billion. The new deal would increase this to US$5.87 billion. “This is not what is most convenient for the country because it compromises not only future generations, but we ourselves will have to pay this debt,” said the economist. He said the Senate has passed US$1.7 billion up to this moment and has on its agenda another US$500 million. These figures do not include the guarantee the State has given to loans such as Plan Renove and other concessions. Also pending is the approval of financing for the Northwest Aqueduct, another US$160 million. Toribio said he opposes the US$500 million in sovereign bonds because this will require that the government make interest payments of US$30 million every six months. He forecasts the government will have to increase gasoline and diesel taxes and create new taxes in order to pay a debt that was incurred as the result of wrong decisions. He highlighted that the country is borrowing for public works or services that will be purchased without tenders and at high commercial bank rates. Contrasting to the US$2.2 billion forecast for 2001, El Siglo publishes that the foreign debt increased US$138.6 million from 1999 to 2000. In 2000, the state borrowed US$130.6 million from the World Bank, US$135.1 million from the InterAmerican Development Bank. Also US$271.7 million from Spanish banks and US$33.1 million from Brazilian banks.
