NewsWhore
01-20-2011, 03:40 PM
Speaking at the American Chamber of Commerce's monthly luncheon meeting yesterday, Finance Minister Vicente Bengoa stated that the Dominican foreign debt was sustainable. He said that 97.1% of the total is bonds, or owed to multilateral and bilateral organizations. He said that 2.9% of the total, equivalent to US$310.4 million is owed to private lenders. Bengoa said that US$4.21 billion, or 39.2% of the debt is owed to multilateral organizations. A further US$4.08 billion is owed to bilateral organizations, and US$2.14 billion or 19.9% is in bonds.
The main bilateral lender is Venezuela, with US$1.89 billion, followed by Brazil with US$624 million, Spain with US$395.3 million and the US with US$315.5 million, for 78% of the bilateral public debt.
Relative to GDP, he said the public debt during the Fernandez administration has declined from 28% of GDP in 2004 at the end of the Hipolito Mejia government. He said it is at 20.7% GDP as of 31 December 2010.
A graph presented on the evolution of the foreign debt outlined the relationship between debt and GDP over the past 15 years. In 1996, at the start of the first Fernandez administration, the debt was US$3.74 billion (21.5% of GDP), in 2000 at the end of the first Fernandez administration it had declined to US$3.63 billion (15.2% of GDP). The Hipolito Mejia administration increased the debt to US$6.33 billion (28% of GDP) by 2004. From 2004-2010, the foreign debt, again under the Fernandez administration climbed to US$10.74 billion (20.7% of GDP).
In the Letter of Intent published by the International Monetary Fund on 3 December 2010, the data shows projected public debt relative to GDP to be 35.7% for 2011, excluding Central Bank recapitalization bonds.
In January, former governor of the Central Bank Bernardo Vega warned that the public debt would move from 41.3% of GDP to 42%.
www.hoy.com.do/opiniones/2011/1/4/356441/Los-compromisos-economicos-del-2011 (http://www.hoy.com.do/opiniones/2011/1/4/356441/Los-compromisos-economicos-del-2011)
www.imf.org/external/np/loi/2010/dom/120310.pdf (http://www.imf.org/external/np/loi/2010/dom/120310.pdf)
More... (http://www.dr1.com/index.html#3)
The main bilateral lender is Venezuela, with US$1.89 billion, followed by Brazil with US$624 million, Spain with US$395.3 million and the US with US$315.5 million, for 78% of the bilateral public debt.
Relative to GDP, he said the public debt during the Fernandez administration has declined from 28% of GDP in 2004 at the end of the Hipolito Mejia government. He said it is at 20.7% GDP as of 31 December 2010.
A graph presented on the evolution of the foreign debt outlined the relationship between debt and GDP over the past 15 years. In 1996, at the start of the first Fernandez administration, the debt was US$3.74 billion (21.5% of GDP), in 2000 at the end of the first Fernandez administration it had declined to US$3.63 billion (15.2% of GDP). The Hipolito Mejia administration increased the debt to US$6.33 billion (28% of GDP) by 2004. From 2004-2010, the foreign debt, again under the Fernandez administration climbed to US$10.74 billion (20.7% of GDP).
In the Letter of Intent published by the International Monetary Fund on 3 December 2010, the data shows projected public debt relative to GDP to be 35.7% for 2011, excluding Central Bank recapitalization bonds.
In January, former governor of the Central Bank Bernardo Vega warned that the public debt would move from 41.3% of GDP to 42%.
www.hoy.com.do/opiniones/2011/1/4/356441/Los-compromisos-economicos-del-2011 (http://www.hoy.com.do/opiniones/2011/1/4/356441/Los-compromisos-economicos-del-2011)
www.imf.org/external/np/loi/2010/dom/120310.pdf (http://www.imf.org/external/np/loi/2010/dom/120310.pdf)
More... (http://www.dr1.com/index.html#3)