Bolivian Economics 101: The external debt, a serious problem

An Editorial from El Diario:

The external debt, a serious problem

El Diario logoIt seems that there was always a kind of slogan in all governments: appeal for all to indebtedness. Grave resource that seriously compromises the country, both because interest is paid, even as low as they are, and in cases, commissions that even after many years of grace, the country must cancel and sometimes have to do at critical moments when there are no resources.

The Government, in recent years, despite the reservations, the high revenues from sales of gas and even greater tax collection has always had enough money not only to cover the budget but to cancel foreign debts of the multilateral field and bilateral; however, it has resorted to loans that, like it or not, compromise a lot the country.

In the decades of the 60s and 70s, there was a great deal of money, especially by oil producing countries with low interest, so that Third World countries took -case of Brazil, India, Argentina, Mexico and many others- these financial means to install industries and infrastructure works. Our country was not spared from these opportunities and significant amounts hired served many governments.

Screen Shot 2015-04-13 at 8.41.09 AMThe hobby of borrowing does not end, although in the past nine years, had the intention of avoiding them; however, if the country’s debt to December 2003 was $5,142.2 million dollars, after cancellations made us by international agencies and friendly countries, the debt was $2,207.9 million in 2007, but -as not to forget the usual bad-, debt rose to $5,261.8 million by December 31, 2013. The debt we now have to December 2014, including what they mean sovereign bonds, hired as discretion and high interests- is probably higher than any forecast.

The Ministry of Economy, when explaining something referred to external debt invariably try to justify their actions without success and the people left with the bitter feeling that the country borrowed without any need and with serious interest obligations to be paid or accrued, as often is customary, though these accruals are converted into capital and have to pay more interest charges.

The problem is thus serious for the country because we have to meet this obligation, at some point, will be very costly, especially when they suffer from the insufficient availability. It would be prudent, sensible, honest and responsible not to contract more debt, since we have it and with the addition of domestic debt, the country already has reason to be seriously worried.

http://www.eldiario.net/noticias/2015/2015_04/nt150409/editorial.php?n=14&-la-deuda-externa-un-problema-serio

What could have ever been expected from the masismo? I ask.

They inherited the  government at the best economic time possible in all our history but with the worst possible gang ever! I called it ochlocracy as the masistas, from top to bottom, represent the worst of our society, not prepared to govern, without professional skills to lead, and with egocentric, paranoid behaviors. Let alone without moral and ethic values.

The masistas succeeded in grabbing control of all the state powers, managed to get three consecutive elections for their coca grower caudillo. They wasted a decade and $150 billion dollars were wasted… and now the debt reaches its high over the last two decades!!??

Follows an excerpt from El Dia, posted in www.hoybolivia.com, for the full Spanish news, please use the link at the bottom, thank you.

External debt reaches the highest peak in 20 years

13/04/2015 – 7:02:23

El Dia.- The public debt of Bolivia amounted to $5,736 million dollars in 2014, the highest amount in the last two decades, according to data from the Central Bank of Bolivia (BCB). Also, the three main creditors of the country are the Development Bank of Latin America (CAF), the Inter-American Development Bank (IDB) and the People’s Republic of China.

http://hoybolivia.com/Noticia.php?IdNoticia=143467&tit=deuda_externa_llega_al_pico_mas_alto_en_20_anos

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