Bolivia’s total external and internal public debt is at 46 percent of gross domestic product (GDP) and is among the lowest in the world, informed today the Bolivian Minister of Economy and Public Finance, Marcelo Montenegro.
He explained to journalists that the increase in debt in some countries has already reached more than 300 percent of the GDP of their economies.
He also emphasized that the debt contracted by the Bolivian State is destined for investment projects, not for current spending and salary payments.
“In a complex international context, Bolivia is gradually reducing its fiscal deficit, maintaining the lowest inflation in South America and worldwide, while many economies have entered a period of economic recession and high inflation rates”, he said.
According to the Minister of Economy, despite an increase, the debt ratio continues to be below the limits recommended by international organizations, such as the Andean Community, which establishes 50 percent of GDP, and the Maastricht Treaty of the European Union, 60 percent.
He also explained that the correct analysis of the total public sector debt should be carried out with a consolidation of figures, that is, with the deduction of the intra-sector debt between the Government, represented by the General Treasury of the Nation, the public enterprises and the Central Bank of Bolivia, to avoid a double-counting error.