In its most recent Preliminary Balance of the Economies of Latin America and the Caribbean, the Economic Commission for Latin America and the Caribbean (ECLAC) located in the Dominican Republic among the four countries in the region whose level of indebtedness with external creditors exceeds 70%.
The other nations that accompany the country are Paraguay, Nicaragua and Panama.
The report indicates that due to the deterioration of tax accounts the debt has increased in most countries, however, Dominican Republic is among the seven that move increased above average.
Along with Brazil, Colombia and El Salvador the country ranks among the four whose public debt registers an increase of more than ten points of gross domestic product (GDP) between the close of 2019 and September 2020.
In the Dominican Republic alone (14.1) and Brazil (14.8), public debt levels exceeded 14 points during the period cited. In Colombia the increase was 12.4, in El Salvador 10.8, in Honduras 8.8, in Paraguay 8.0 and in Costa Rica 7.7. In the case of Brazil, the agency expects public debt to reach 96% of GDP by the end of this year.
“The broad fiscal response aimed at mitigating the social and economic effects associated with the pandemic has put strong pressure on the financing needs of most countries in the region, which translates into an increase in levels of public debt in recent months of 2020 ”, reviews the study presented this Wednesday by the executive secretary of the regional body, Alicia Bárcena.
The report states that at the end of September of this 2020 the gross average debt of the central governments of Latin America reached a 53.4% of the GIP, a figure that exceeds by 7.4% that of the close of 2019.
More loans
Just yesterday the Chamber of Deputies approved the bill authorizing the Executive Branch, through the Ministry of Finance, the issuance and placement of public debt securities for an amount of RD $ 291 billion.