Humberto Vacaflor writes in El Deber:
Debts at times of bonanza
The 2014 campaign has begun. Everything is handled with that in mind. The IDB and CAF presidents had to arrive, to praise the handling of the economy, coinciding with the new sovereign bond placement. The characters have to be first class. Outstanding. The international jet set should be included in this campaign.
A visit by President Evo Morales to the Pope is scheduled, [so the latter can] explain what it is that of the Catholic Church, has said the Minister Carlos Romero, and many other presentations in Europe. Perhaps would be convenient for the President to apply for a ‘schengen’ visa, in order to avoid inconvenience. At the moment, the campaign program included expressions of confidence in the economy, so it was necessary that the country engages in little more debt. The idea is to show that the economy is so well, that the country is subject to unlimited amounts of granted unsecured credit. In the end, an additional amount of the election campaign, cost which will be charged to external debt.
Now, only with the IDB, CAF and the World Bank, the country has an accumulated debt of more than $2.8 billion dollars. Even in the craziness of the indebtedness of Hugo Banzer we didn’t reach these levels. As for the new issuance of sovereign bonds, which was received with joy in the midst of the entertainments to the guests-creditors, the impact was immediate. Nobody noted that, from one year to another, from the issuance of last year to the second, the interest rate grew from 4.88% to 5.95%. They are details that would be awkward to repeat before the audiences of applause.
According to Armando Méndez, former President of the Central Bank, the money of the previous issue has been incorporated into the reserves. If that is so, leaders would be doing these operations only to give blows of scene, mentioning the amounts of international reserves. It is curious that whenever they raise the prices of the raw materials exported by the country, there would be at the Palacio Quemado rulers with a strong impulse to the external indebtedness. According to these rulers twinned over time, it is not enough to have money; we should have credit and use it. That happened with Banzer 40 years ago. And we do not learn. The party continues.
No wonder this gov is pushing relentlessly for the illegitimate re-re-election, they want to continue in power until the money flow runs out… they don’t care how worse and impoverished they leave us, they just want to enrich themselves… just wish that majority who voted for him before, would come to their senses and end this nightmare!