Budget chief downplays spiraling debt

Santo Domingo.- Budget director Luis Reyes on Tuesday said that by 2019 the Government will only be increasing the debt by RD$75.5 billion net (US$1.4 billion) to cover the fiscal deficit of 1.7% of GDP,  consigned in the bill for that year’s Budget.

He said RD$231.9 billion in internal and external financing will be sought, and RD$156.4 billion from that will be used to amortize debts and liabilities. “In that sense the net increase in the debt caused by the budget management of 2019 would be only RD$75.5 billion, or US$1.5 billion at a rate of RD$52.18 per dollar.”

He added that they are borrowing to pay the debt due. “That leaves us in the same situation as we’re in. It’s as if we were doing a rollover of the debt, that you pay credit that was due this month and that leaves you in the same situation.”

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