The Minister of Finance, Jochi Vicente, highlighted this Tuesday that the public debt Dominican Republic, as a percentage of gross domestic product (GDP), registered a reduction in 2022, stating that it is less than that received by the Government in August 2020.
In a press release and posts on his Twitter account, Vicente reported that during the aforementioned period the current administration managed to lower the indebtedness of the public sector in almost two points percentages, going from 61% to 59.1%.
He specified that the reduction in the non-financial public sector debt has been greater than the consolidated. Likewise, he highlighted that in August 2020 the debt ratio was one 49.7% as a percentage of GDP and at the preliminary close of 2022 ended with a 46.1%.
“And we achieved this despite having faced the external impact largest in history and inflation caused by the invasion of Russia. The proactive indebtedness strategy that we have implemented is evidenced in the three liability management transactions, which have decreased the cost of debt and increased the average maturity of the portfolio,” says the note.
The official pointed out that the Government was recognized in article four of the International Monetary Fund (IMF) for the “timely handling of the indebtedness”, a document in which it was concluded that the public debt of the country is sustainable and that the policies that have been adopted are appropriate.
He also cited as an example that in the page 55 of the referral report It is stated that: “the public debt it is sustainable and the risks have decreased compared to the previous DSA, due to a lower debt burden and gross financing needs”.
“In 2023 we will continue with our proactive debt management to continue guaranteeing its sustainability and getting even closer to our goal of obtaining the Investment Grade by the risk rating agencies”, concluded the person in charge of the country’s public finances.
