Bank credits to government up 58%, to the private sector’s 13%
The Dominican government continues to be the big consumer of credit in the Dominican Republic. Despite its critics, the government has chosen to resort to foreign and domestic financing rather than reduce its bloated spending. The World Economic Forum Global Competitiveness Report lists the Dominican Republic as a world leader in wasteful spending. In the past 12 months, government borrowing from banks has displaced private borrowing, with its increase in public debt and issuing of government bonds.
Diario Libre reports that through 31 January 2014, the governmental commercial bank, Banco de Reservas had accounted for 99.7% of lending to the public sector. The government owes a staggering RD$96.6 billion to its creditors. In January, the foreign debt in US$ increased 12%.
Source: DR1, Diariolibre
Category: DR News |