The rapid growth of debt is not only from the central government but also that of municipalities and state enterprises.
Up to August the balance of the central bank's debt grew by 39% compared to the same period in 2012, followed by municipalities with 23%.
These two are joined by the nonfinancial public entities with 20% and the Central Government with 25%. The figures were revealed by the Ministry of Finance and the Central Bank of Costa Rica.
Despite the restriction by the central banking system which has caused a general credit contraction, consumer loans have grown by 22%.
According to data from the Superintendent of Financial Institutions (Sugef), these activities are maintaining an upward trend, despite a slowdown in the national economy. "The growth in both sectors is important because they are together as a whole, 40% of the total credit granted by banks", reported Nacion.com.
In a worst case scenario, debt could climb to 50% of GDP within 2 years.
According to economist Thelmo Vargas, a partner at the consulting firm Ecoanálisis, the forecast is of a base scenario in which interest rates are 5%, the economy grows at a rate of 4% and a primary deficit of 3% is registered for production.
"However, in a scenario with more pessimistic assumptions, Government obligations could grow from 38.7% of GDP expected for 2013 to 50.3% of production in 2015," noted an article in Elfinancierocr.com.
español
6505
