The interest generated by the national debt caused the fiscal deficit to end the first quarter at 2.08% of the Gross Domestic Product (GDP); while at this time last year it was 1.93% of GDP.
Despite the fact that total government revenues grew by 9%, expenses increased by 11%, hence the imbalance.
The accumulated deficit to April 2019 is the highest for a first semester since 2009, when this country’s financial deficit began to grow.
On the other hand, in order to better manage such interest payments, the government has successfully exchanged some debt securities that matured this year or in the next two, for others over five years.
The fiscal reform, together with past exchanges, have returned confidence to the market, which has been reflected in higher placements and a better profile of the debt, the Treasury said in its monthly report.
On the other hand, the Treasury reiterated the need to have Eurobonds, so that the interest on the next loans will be cheaper and thus, savings in payments can be allocated to urgent projects for the reactivation of the economy.
The country’s money needs are already covered until the end of June.