In a year marked by the COVID-19 pandemic, the total Dominican debt reached, in 2020, a historic mark, increasing to 54,469.3 million dollars, an amount that is equivalent to 69.1% of the Gross Domestic Product (GDP).
The data, published this week by the Central Bank of the Dominican Republic, speak of a rise of 9.541 million dollars in the level of indebtedness in the last year.
80% of these new commitments were concentrated in the second half of 2020. The rest were concentrated in the first half of the year.
The strong pressure that COVID-19 exerted on fiscal accounts, with emergency expenses that the government had to face, and a fall in tax collection, forced them to seek financing through debt.
The indebtedness reflects not only the commitments assumed by the central government and the rest of the non-financial public sector through bond issues in international markets, but also the debt that was issued by the Central Bank throughout the year. past.
In this sense, the non-financial public sector accumulated an internal and external debt in 2020 for 44,622.3 million dollars, while that of the Central Bank added 12,227.8 million dollars in that same year.
The record level of debt also implies higher payment commitments in the medium and long terms, which are added to those already assumed by previous governments.
Coming pressures
According to official projections, the accelerated rate of indebtedness will generate strong fiscal pressures between 2023 and 2026, when debt service payments of about 20,000 million dollars will be concentrated. This only cover the commitments derived from the debt of the non-financial public sector.
Only last year, as a consequence of the debt assumed in recent years, the Dominican State had to pay $ 7.35 billion, just for debt service – the payment of principal and interest – between the central government and its creditors, according to the data of the Directorate of Public Credit, of the Ministry of Finance.
This amount does not include the payments that the Central Bank must make for this concept for the debt papers it has issued in recent years.
Source:
Diario Libre
