Economy October 6, 2020 | 10:06 am

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Gov. measures aim to calm an economy adrift

Santo Domingo.- In 2021 the government plans to borrow at levels similar to previous years, but the medium-term strategy is to smooth the profile of debt maturities and reduce financing costs.

The debt level the government will assume next year is expected to be RD$291.5 billion (US$5.03 billion) or 5.9% of GDP, a level similar to that of previous years without a pandemic.

“The gross need for financing this year, in the midst of the COVID-19 crisis, has shot up to extraordinary levels: this year’s budget allows a debt of 599.5 billion pesos.,” Diario Libre reports.

Most of the new debt in 2021 will be placed in international markets, through sovereign bonds. The budget bill that the Presidency submitted last Thursday to Congress for analysis and approval provides for external financing for RD$200.5 billion, of which RD$140.2 billion will be through debt papers issued in foreign markets, whether in dollars, Dominican pesos or another foreign currency.

“The external debt strategy is oriented towards a better balance of the portfolio risks, seeking to smooth the maturity profile, reduce financing costs, expand the investor base, among others.”

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