Despite disdaining remarks on economic reality and ‘appearance’ of success, current government’s failures are becoming increasingly harder to hide. Yandira Toledo writes for El Dia:
The debt continues rising, offsetting the investment in the country. According to the report in the monthly State of the external debt of the Central Bank of Bolivia from January 1 to April 30, 2012; there is an increase of $ 77 million.
According to the presented figures, the total external debt balance was $3,585.2 million dollars until December 31, 2011 and this amount was increased up to $3,662.4 million in the first quarter .
CAF which is still the most important creditor, with a debt of $ 1,362 million and a share of 37.2 per cent of the total debt, followed by the IADB with $ 760.3 million and a 20.8 percent stake is located between multilateral creditors.
Bilateral creditors: Venezuela continues to be the main with $ 423.5 million and a participation of 11.6 per cent of the total debt, followed by the people’s Republic of China with 170.9 million and a share of 4.7 percent of the total owed.
The country received in total disbursements of $ 245.2 million and paid as part of debt $ 201.7 million, of which 24.5 represent the interests, which means a quarter of the amount.
Analysis. Analyst and President of the Association of economists of Santa Cruz, Marcelo Núñez, said the Government continues to seek external financing rather than find and attract strategic partners, investment that contribute in the development of the country. “We know that the cost of interest is high when obtainable foreign loans, investments are bad, the Government scares them out and about four had already engaged in arbitration processes, from the external point of view this is not synonymous with guarantee to invest”, stated the representative of economists.
So, the bottom line is we owe more than we are acquiring. Over the long-term we will see that we end up paying for most of those loans that have not supported sustainable development; and what is more important our inability to seek foreign capital investment continues to be a drag and a reflection of our current economic and political policies.