NewsWhore
10-20-2010, 03:10 PM
Economist Henri Hebrard says that the Central Bank (BC) document on the public debt is positive, but the debt service is high, and he does not think the government is likely to increase its social spending.
In the meantime, PRD president Miguel Vargas Maldonado, says that this is the administration that has taken out the most loans, and uses them in waste and extravagance without resolving any of the people's basic needs such as health, education and public safety. According to Diario Libre, Vargas referred to the BC report, covered in the media, which states that the debt is manageable and that as of 31 August was at US$18 billion and not the US$22 billion quoted by some analysts.
Hebrard said that the most difficult part of the document to defend is the cost of the debt service, since it affects the budget in the areas of expenditures for public investments.
Nonetheless, Hebrard applauds the transparency that the Central Bank has demonstrated with this publication, because there was a lot of noise being made, including some that was just for political ends. He said that the debate should not be whether a lot of money has been taken out in loans, but rather what has been done with the money, and that is where there could be some questions. He believes that much of the debt is produced because it is a way to finance and to cover the fiscal deficit, and a part of this can be explained by the poor quality or the poor prioritization of the expenditure.
The Central Bank says the public foreign debt is at US$18 billion that compares to US$9 billion at the start of the Fernandez administration in 2004.
More... (http://www.dr1.com/index.html#4)
In the meantime, PRD president Miguel Vargas Maldonado, says that this is the administration that has taken out the most loans, and uses them in waste and extravagance without resolving any of the people's basic needs such as health, education and public safety. According to Diario Libre, Vargas referred to the BC report, covered in the media, which states that the debt is manageable and that as of 31 August was at US$18 billion and not the US$22 billion quoted by some analysts.
Hebrard said that the most difficult part of the document to defend is the cost of the debt service, since it affects the budget in the areas of expenditures for public investments.
Nonetheless, Hebrard applauds the transparency that the Central Bank has demonstrated with this publication, because there was a lot of noise being made, including some that was just for political ends. He said that the debate should not be whether a lot of money has been taken out in loans, but rather what has been done with the money, and that is where there could be some questions. He believes that much of the debt is produced because it is a way to finance and to cover the fiscal deficit, and a part of this can be explained by the poor quality or the poor prioritization of the expenditure.
The Central Bank says the public foreign debt is at US$18 billion that compares to US$9 billion at the start of the Fernandez administration in 2004.
More... (http://www.dr1.com/index.html#4)