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DR growth strategy has been based on foreign borrowing

A recent article in Diario Libre focuses on the borrowing spree undertaken by Presidents of the Dominican Republic since 2000. The country’s three most recent administrations have incurred a whopping US$29.7 billion in public debt from 2000 to 2016.

When President Hipólito Mejía (2000-2004) took office, the consolidated public debt was US$4.38 billion. At the end of his Presidency, the debt had more than doubled to US$10.87 billion, up 147.84%.

Next to follow was President Leonel Fernández’s administration that in his second period in office, inherited the public debt at US$10.87 billion, and had ballooned to US$15,440.6 million, increasing the debt by 41.98% from 2004-2008. In his third term (2008-2012), Fernandez administration added an additional US$9.62 billion, and ended his presidency with US$25.06 million in consolidated public debt.

While Mejía took on US$6.48 billion in new debt, Fernández took on US$14.19 billion.

Next to follow was President Danilo Medina (2012-2016). He received the consolidated public debt in US$25.06 billion and added US$9.03 billion. During the 2016-2020 government, the Medina administration has continued to take on new debt.

Diario Libre interviewed Rafael Espinal, coordinator of the School of Economy of Intec university and Ernesto Selman, executive vice president of the Center for Regional Sustainable Economic Strategies (CREES) who both considered the debt has taken on an unsustainable path.

Source: DR1, DiarioLibre

Sep 5, 2017

Category: DR News |

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Last updated September 20, 2017 at 12:27 AM
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