NewsWhore
10-19-2010, 02:40 PM
Former Central Bank governor Bernardo Vega says that in 2011 the public debt will increase from 41.3% of the GDP to 42%. Vega said that the government's current spending will increase because wage increases and interest payments on domestic and foreign debt are still pending, as reported in Hoy.
Vega criticized the way that the government has taken on "turnkey loans", especially with European banks and the US Eximbank. He says these loans enable projects to be financed without tenders. Vega said: "Of that expensive indebtedness, this year US$350 million has been added to the foreign debt and in 2011 this will increase by a further US$543 million," he said. He said that in addition to the US$750 million in sovereign bonds issued in 2010, next year the government has plans to issue another US$500 million.
Vega said that for the government to meet its new debt obligations it needs to take on more debt at 7% abroad, taking on the exchange risk, or to issue sovereign bonds here at 14%.
Vega made the point that 45% of all tax revenues have already been allocated to paying past debt. Vega made these comments on El Dia, Channel 11, interviewed by journalists Huchi Lora and Patricia Solano.
More... (http://www.dr1.com/index.html#2)
Vega criticized the way that the government has taken on "turnkey loans", especially with European banks and the US Eximbank. He says these loans enable projects to be financed without tenders. Vega said: "Of that expensive indebtedness, this year US$350 million has been added to the foreign debt and in 2011 this will increase by a further US$543 million," he said. He said that in addition to the US$750 million in sovereign bonds issued in 2010, next year the government has plans to issue another US$500 million.
Vega said that for the government to meet its new debt obligations it needs to take on more debt at 7% abroad, taking on the exchange risk, or to issue sovereign bonds here at 14%.
Vega made the point that 45% of all tax revenues have already been allocated to paying past debt. Vega made these comments on El Dia, Channel 11, interviewed by journalists Huchi Lora and Patricia Solano.
More... (http://www.dr1.com/index.html#2)