Adding Central Bank debt to get real public debt

[NewsWhore]

Economist Miguel Ceara Hatton is calling for the government to quantify the public debt adding that of the Central Bank, following recommendations from the International Monetary Fund (IMF). As reported in Hoy, Ceara Hatton said: "If the government does that, the ratio of debt-GDP will go from 29% to 40.3%. He said to the government debt of US$17 billion (about 29% of GDP), one has to add the US$6.2 billion of the Central Bank, which brings the total government debt to almost US$23 billion. Ceara Hatton said that the public debt statistics published by the Ministry of Hacienda include foreign and internal debt, but exclude the Central Bank debt. As reported in Hoy, Jose Lois Malkun, governor of the Central Bank during the Hipolito Mejia presidency and the 2003 banking crisis, said that in 2004, when the government changed from Mejia to Fernandez, the public debt was around US$9.7 billion.

Earlier last week, Ceara Hatton argued that the Fernandez government was leaving the new government a time bomb. He said the administration would have to disburse 5% of GDP in 2013 and 5.6% of GDP in 2014. He said that the public debt, excluding that of the Central Bank, has been growing fast since 2008. He said that 68% of the US$13.3 billion of new debt taken on from 2000 to 2011 was taken on from 2008 to 2011.

www.hoy.com.do/el-pais/2012/3/2/417094/Malkun-y-Ceara-refutan-a-Vicente-Bengoa (http://www.hoy.com.do/el-pais/2012/3/2/417094/Malkun-y-Ceara-refutan-a-Vicente-Bengoa)

www.hoy.com.do/economia/2012/2/28/416495/Deuda-externa-limitara-gestion-nuevo-Gobierno (http://www.hoy.com.do/economia/2012/2/28/416495/Deuda-externa-limitara-gestion-nuevo-Gobierno)

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