Non-Financial Public Sector owes US$28.9B as of August

Santo Domingo.- The Dominican Govt. has issued US$2.2 billion in new debt during the first eight months, for which the Non-Financial Public Sector (SPNF) owes US$28.9 billion as of August, or 39% of GDP.

Public Credit Dept. data show that most of that impulse came from external commitments, which went from US$17.4 billion last December to US$18.9 billion in August, for an eight-month jump of US$1.5 billion in the external debt of the NFPS.

The Govt. issued two sovereign bonds In the first half, one for regular financing and another for US$500 million to cover progress in the construction of the Punta Catalina power plant, hobbled by the Odebrecht bribe scandal, which prompted European banks to suspend financing.

Meanwhile, debt issued in the domestic market rose from US$9.4 billion at yearend 2017 to US$10.0 billion, or US$6.7 billion growth in the first eight months of the year.

The NFPS debt doesn’t include the contracted by the Central Bank, for which there are no updated figures.

Central banker Héctor Valdez Albizu recently, reported that for last June the consolidated public debt (non-financial sector and financial sector) accounted for 49.6% of GDP.