The most intense increase in Dominican debt in the last eight years was recorded in the first quarter
The total consolidated Dominican debt registered in the first quarter the most intense rate of increase in the last eight years after reaching 48,052.3 million dollars, according to data published this week by the government.
With this amount, which includes the commitments of both the central government and the Central Bank of the Dominican Republic between January and March, the country’s indebtedness increased by 14.2%, a percentage that is equivalent to about $ 5.975 million more over the past year. .
Those data do not include the new debt that was announced to address the coronavirus crisis, which so far adds close to $ 900 million more between internal debt issues, the emergency loan from the International Monetary Fund and the use of a line of financing from the World Bank.At this level, the country’s consolidated public debt already represented 52.3% of the Gross Domestic Product (GDP) for the first quarter of the year, a level that it had not registered in the last eight years either and is expected to continue increasing for the next months. At least that is what the International Monetary Fund estimates in its latest report on the country: at the end of this year, amid a decline in the economy of -1% and greater financing needs to respond to the emergency by COVID-19, the level of total consolidated debt could represent 60.9% of GDP.
The total consolidated debt is divided into two segments, that of the commitments assumed by the central government with local or international creditors, among which are bondholders, countries or multilaterals, which for these purposes is known as the debt of the Non-Financial Public Sector ( SPNF) and is released monthly. Then there is the debt that the Central Bank issues with its certificates and papers issued in the local and foreign markets, which is managed by the Public Financial Sector and whose levels are published quarterly.
The greatest growth has been focused on external debt. According to data from the Central Bank and the Public Credit Directorate of the Ministry of Finance, the amount of the country’s external commitments totaled $ 26,190.6 million, which contrasts with the $ 21,715.5 million that the country owed to its creditors. as of March last year.
Meanwhile, domestic debt closed in the first quarter at $ 21,862.7 million, up from the $ 20,361.7 million that was owed a year earlier.