Balance of the country's debt is at 28.5% of GDP

Do is bad or not borrow?-for many economists incurring a strong debt implies a severe problem for any economy. But for others the only debt is bad when it exceeds the capacity to pay of the Nations who come to this resource.

In fact, the problems come when there is no what settle the commitments in the allotted time, and that is not the case for Dominican Republic at the current moment, because to love or the country is not obliged to keep a cap the annual budget for 2011 and 2012, as part of the commitment with the International Monetary Fund (IMF).

Data of the Directorate of public credit point out that on October 31, 2011, the balance of the total debt of the Sector public non financial (SPNF), i.e., out of the debt of the Central Bank, was $15,511.5 million, representing the 28.5 per cent of the gross domestic product (GDP) estimated at $55,753 million.

Of the total of the debt of the SPNF, about u000aRD$ 11,028.8 billion external debt, which in turn includes RD$ 11,022.9 million from the central Government and RD$ 6 million are from the rest of the SPNF.

While the SPNF internal debt accumulated to October commitments by RD$ 4,482.7 million.

In general, the country maintains a sustainable debt, taking into account that others of its size and many of the Latin American region have a greater proportion of debt (37% average).

Behavior
the balance of debt of the SPNF, consists in 71.1% for external debt, which presented a balance of $11,028.8 million, while than the 28.9% corresponds to internal debt, which totaled RD$ 171,812.6 million (equivalent to $4,482.7 million). These amounts represent the 20.3% and the 8.2 per cent of estimated GDP, explains the report of the Treasury from 2011 enero-octubre. Of the total domestic debt, about $2,219.4 million (4.1% of GDP) is intra-governmental debt, i.e., the debt owed by one u000ainstitution of the Government to another, such as bonds issued by the central Government for the capitalization and recapitalization of the Central Bank indicates.

To make those commitments was adopted the law 167 - 07, which in its article 5 orders the Ministry of finance via public credit to issue bonds partly for the recapitalization of the CB up to RD$ 320,000 million between 2007 and 2016.

Under the aforementioned Act, in 2007 the BC Government transfers, contained in the annual budgets would be 0.5% of GDP in 2008 from 0.6% in 2009 from 0.7% in 2010 of 0.8% in 2011 of 0.9% in 2012 of 1.0% in 2013 from 1.1% in 2014 of 1.2% in 2015 of 1.3% and 2016 1.4 per cent of gross domestic product.

Gradual clearing may not be less than 1% of GDP from 2017 onwards, until the total redemption of the bonds for the recapitalisation, which is amended pursuant to article 82 of the monetary law and u000aFinancial, which speaks of 50 years for the issuance of bonds in national currency of an interest rate of only 2%.

CON LOS agencies MULTILATERALE
in 2011, the public debt of Dominican Republic, as a proportion of GDP is slightly lower than in 2010.

Of total external debt (SPNF) amounting to RD$ 11,028.8 million, have been reached $3,909.3 million with multilateral financial institutions, from January to October this year; $4,533.3 Million are bilateral (between Governments); $363.7 Million commercial banking, and $2,216.6 million in bonds. Internal debt is of US$ 4,256.1 MM, US$ 401.8 MM with commercial banks, US$ 1,695.5 MM in bonds, and IS$ 2,158.8 MM in the CB recapitalisation bonds.

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