According to Marcelo Montenegro, the Minister of Economy and Finance in Bolivia, the country’s foreign debt growth rate is negative when measured against the Gross Domestic Product (GDP).
This highlights the urgent need to expedite the approval of credits that can support public investment.
Montenegro stated that Bolivian foreign debt is currently at -0.1% per month, contrary to the trend observed in most economies that tend to accumulate debt.
He referred to the findings of the book “Signals: The 27 trends that Define the Future of the global economy” by Jeff Desjardins.
In light of this situation, the minister emphasized the urgency of approving pending credits worth US$327.4 million in the Chamber of Deputies.
He also highlighted that Bolivia’s average monthly debt is US$58.4 million.
Montenegro clarified that debt is not inherently negative, as it provides resources for investment projects or covers expenses.
He cited the government’s response to the COVID-19 pandemic, where debt was utilized for necessary expenditures.
The minister expressed appreciation for the Senate’s recent approval of a US$500 million credit.
However, he cautioned that without the prompt and timely disbursement of credits, the overall state budget lacks the efficiency and continuity required to advance investment projects and foster economic development in the country.