NewsWhore
10-19-2010, 02:40 PM
The non-financial public sector net debt (SPNF), which includes internal as well as external obligations, reached US$13.97 billion at the end of August, according to a report the Central Bank released yesterday. At the same time, the public sector consolidated debt is placed at US$18.07 billion, or equivalent to 37.2% of GDP, as reported in Diario Libre.
The bank says that 97.6% of the total, equal to US$13.64 billion, corresponds to the central government debt and the remaining 2.4% is part of the debt of the so-called remainder of the Non-Financial Public Sector.
The bank said that a realistic estimate foresees that by the close of the year the total debt of the SPNF would reach approximately 28.5% of GDP (18.5% corresponding to foreign debt and 10% to internal debts), which will be barely 0.1% of the GDP, higher than the level at the close of 2009.
The Central Bank argued that at present debt with private lenders, including bank loans and sovereign bonds is at 24.4% as of August 2010. The remainder is placed with multilateral and bilateral organizations that offer softer conditions.
The bank says that during this government's administration there has been a favorable change in the makeup of the external debt, which allows more room and flexibility, reduces the financial costs and contributes to the long-term sustainability.
The Central Bank says that the statistical focus that the debt analysts are using up until now does not take into account the fact that capitals enter the economy to finance the budget annually. The bank explains that foreign debt is a long-term issue.
The Central Bank believes that the analysis of sustainability should be based on a dynamic focus of debt service.
More... (http://www.dr1.com/index.html#1)
The bank says that 97.6% of the total, equal to US$13.64 billion, corresponds to the central government debt and the remaining 2.4% is part of the debt of the so-called remainder of the Non-Financial Public Sector.
The bank said that a realistic estimate foresees that by the close of the year the total debt of the SPNF would reach approximately 28.5% of GDP (18.5% corresponding to foreign debt and 10% to internal debts), which will be barely 0.1% of the GDP, higher than the level at the close of 2009.
The Central Bank argued that at present debt with private lenders, including bank loans and sovereign bonds is at 24.4% as of August 2010. The remainder is placed with multilateral and bilateral organizations that offer softer conditions.
The bank says that during this government's administration there has been a favorable change in the makeup of the external debt, which allows more room and flexibility, reduces the financial costs and contributes to the long-term sustainability.
The Central Bank says that the statistical focus that the debt analysts are using up until now does not take into account the fact that capitals enter the economy to finance the budget annually. The bank explains that foreign debt is a long-term issue.
The Central Bank believes that the analysis of sustainability should be based on a dynamic focus of debt service.
More... (http://www.dr1.com/index.html#1)