Venezuela's domestic debt skyrockets 64% in 10 months
Foreign debt stands at the same level recorded in 2011 (USD 43.5 billion). Meanwhile, domestic debt climbed from USD 35.8 billion to 58.7 billion in 10 months. The country's debt accounts for 28% of the gross domestic product (GDP), but it represents 40% of GDP if the Pdvsa debt (at USD 35-40 billion) is included
Beatriz Bolívar, the head of the Public Credit National Office, said to the National Assembly Finance Committee that by the end of October, the central government's total debt amounted to USD 102.3 billion, a 29% increase in 10 months. By December 2011, the debt amounted to USD 79.2 billion.
Meanwhile, foreign debt stands at the same level recorded in 2011 (USD 43.5 billion) in the absence of further issues this year.
The government has taken on debts amounting to USD 22 billion this year, with domestic issues only.
Bolívar said the country's debt accounts for 28% of the gross domestic product (GDP). Notwithstanding, she noted, "(state-run oil company) Pdvsa's debt stands at USD 35-40 billion and, therefore, the debt (Government, Pdvsa and government agencies) amounts to 40% of GDP."
"The level is quite below international standards and that of other countries." Bolívar added, "The Republic pays off its debts in due time."
Reports from investment financial institutions show that the public debt may attain 46% of GDP if the loans granted by China are included.
Translated by Jhean Cabrera
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.