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Will more debt hinder the development of the Dominican Republic?
In April this year the Dominican Republic borrowed 1.25 billion US dollars on international markets in 30-year bonds. The DR is the only country in the B investment rating group that successfully issued 30-year bonds in the last 6 years. The country has a total of 2.75 billion US dollars for three issuances in the past 15 months.
It is difficult to predict the net effects of the current increase in debt in DR on poverty and inequality. At the same time, it is worth ensuring that debt levels are on a sustainable trend, since high debt levels could hamper growth, increase macroeconomic volatility and, ultimately, provoke a fiscal crisis, which in turn would negatively affect the poor.
It is difficult to predict the net effects of the current increase in debt in DR on poverty and inequality. At the same time, it is worth ensuring that debt levels are on a sustainable trend, since high debt levels could hamper growth, increase macroeconomic volatility and, ultimately, provoke a fiscal crisis, which in turn would negatively affect the poor.