Nicaragua's External Debt is Sustainable

Economic studies indicate that a condition of this is that this key indicator should not exceed 34% of GDP until 2015.

Friday, March 30, 2012

A study from the Nicaraguan Foundation for Economic and Social Development (Fundes) estimates that the country's foreign debt - $4.033 billion in 2011 - will be sustainable if it remains at a value of about 34% of GDP until 2015 and as long as the government doesn’t take on any further commitments with other economic agencies.

Under the Initiative for Heavily Indebted Poor Countries, HIPC Initiative, and Multilateral Debt Relief, MDRI, Nicaragua reduced foreign debt by $2.341 billion, which in 2001 was $6.374 billion, reported Elnuevodiario.com.ni

As for total public debt, this was $5.293 billion last year, according to the study "Towards a public budget to promote the development of Nicaragua", prepared by economist Jose Luis Medal for Fundes.

"We analyzed public debt sustainability and in this analysis we see exactly what the risks ahead are, and in this baseline scenario, we note that there is risk, but the debt remains, at this time, sustainable, we must obviously pay attention to risks like the country growing less," said the IMF representative, Gabriel Di Bella.

See also http://www-ni.laprensa.com.ni/2012/03/30/portada/95987-aumento-deuda-publica-debe (In Spanish)



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