Increase in Public Debt

TeleSUR English
1 Oct 201801:33

Summary

TLDRThe Dominican Republic's rising public debt is raising concerns among citizens and experts, with 73% of it tied to financial imbalances. Debt has grown to 68% over the past six years, representing 54% of the GDP. The central bank's continued borrowing is exacerbating the situation, with 70 billion pesos being paid annually in interest. External debt has reached $21.5 billion and domestic debt stands at nearly $10 billion. A significant portion of this debt is linked to the 2003-2004 banking crisis, and experts warn the government must revise its budget or face potential default.

Takeaways

  • 📈 The public debt of the Dominican Republic has increased significantly, causing concern among its citizens.
  • 🚨 73% of the Dominican Republic's total debt is considered imbalanced and documented in financial terms.
  • 🔍 Experts warn that the situation is becoming more complex as future negotiations approach.
  • 📉 Over the last six years, the debt has risen to 68%, which is 54% of the country's gross domestic product (GDP).
  • 💸 The central bank is continuously injecting money, which the people must repay, with an annual interest payment of 70 billion pesos at a 14% interest rate.
  • 🌐 External debt has reached nearly 21.5 billion dollars as of July 31st, and domestic debt is close to 10 billion dollars.
  • 📊 There has been an increase of 4 billion dollars in debt compared to 2012.
  • 🏦 One of the most concerning issues is the debt linked to the central bank, a consequence of the 2003 and 2004 bank crisis.
  • 💼 The government must invest 40% of the GDP into the central bank annually to manage this debt.
  • 🤔 The increasing debt has become a serious issue, prompting the government to consider replanning its budget or continuing to invest in debt payments to avoid default.

Q & A

  • What is causing concern among citizens in the Dominican Republic regarding public debt?

    -Citizens are worried about the increasing public debt, which has reached 73 percent of the country's financial imbalance, and the complex conditions ahead of future debt negotiations.

  • What is the current percentage of the Dominican Republic’s public debt relative to its GDP?

    -The public debt has increased to 68 percent, representing 54 percent of the country's Gross Domestic Product (GDP).

  • How much interest does the Dominican Republic have to pay annually on its debt?

    -The Dominican Republic pays 70 billion pesos annually to cover the interest on its debt, which has an interest rate of 14 percent.

  • How much has the external debt of the Dominican Republic grown by July 31st?

    -As of July 31st, the external debt has reached 21.5 billion dollars.

  • What is the current domestic debt level in the Dominican Republic?

    -The domestic debt of the Dominican Republic has grown to almost 10 billion dollars, an increase of 4 billion since 2012.

  • What past event is still impacting the Dominican Republic’s public debt?

    -The debt linked to the central bank is still a concern due to the bank crisis that occurred in 2003 and 2004.

  • What portion of the Dominican Republic’s GDP is spent annually on central bank debt payments?

    -The government allocates 40 percent of the country's GDP to pay off central bank debt annually.

  • What could the government of the Dominican Republic be forced to do to manage its rising debt?

    -Experts suggest that the government may need to either replan its budget or continue investing in debt payments to avoid default.

  • How much has the debt increased in comparison to 2012?

    -The total debt has increased by 4 billion dollars since 2012.

  • What future challenges does the Dominican Republic face regarding its public debt?

    -The country faces complex conditions for future debt negotiations, and managing rising interest rates and debt payments could become a grave issue.

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Ähnliche Tags
Public DebtDominican RepublicEconomic CrisisFinancial ImbalanceDebt PaymentsCentral BankGDP ImpactInterest RatesGovernment BudgetDebt Negotiations
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