An Editorial from El Diario:
The inconvenience of the Sovereign Bonds
When in October 2012 and mid- 2013 the government issued two items of $500 million each, were held at all levels, the inconvenience of Sovereign Bonds. In October 2012 the Finance Minister clearly said that “the country does not need foreign credit because the national economy recorded a fiscal surplus.” A totally contrary to the hiring of that debt with higher interest at 5 percent, more than commissions and other position to be paid.
A few days ago, the same Ministry of Economy reported that “paid $24 million in interest on behalf of the holders of those bonds.” This shows how far acted contrary to national interests, especially if you consider that the World Bank lends money at lower interest at 2 percent, long-term and year grace period. Who can understand this anomalous situation of our economy?
The government makes a show of money received by the country ‘s gas exports, although said nothing to be due solely to international prices prevailing in the market and allows producing countries have millions in income. This boom is not due, in any way, has been exceeded production or the national economy has improved because it is an external factor to government policies that may have revenue that the country benefited; occupy separate site mineral exports, before the latest price declines, their increases were also due to the international market as well as exports of soybeans.
The truth is that no one can explain how the Government, for what and why debt contracts with high interest and persistence in doing so gives rise to conjecture or supposition contrary and does not explain why there is a preference for paying high interests rather to pay the lowest with World Bank loans. Also, if the Minister of Finance himself declares that the country does not require loans, why is the persistence in increasing external debt, since in the first half of 2013 rose from $3,700 million to $4,906 million, i.e. over $1,206 million on the balance recorded as of August 2012?
Inconvenient, from every point of view, hiring Sovereign Bonds is practically absurd for the country to engage in debt just to show that Bolivia is able to honor its commitments, as justification to encourage lenders to disburse money. These lenders make a lot with the high interest being paid and there is no need to offer “special guarantees so they can trust.”
It is hoped that all damages entails excessive debt, the Government learn and avoid new debt burden on the people behind their backs and, with great sacrifice, we will have to pay.
Current ochlocracy even bragged of being so experts in economy that they could give “lecture” to all of us … They insist with issuing these bonds…