Interest payments continue pressuring the government’s finances. In July, this area was 21% of the current expenditure of the Executive, according to figures presented by the Vice-president and Finance Minister Helio Fallas.
According to the official, the total debt continues to grow. However, its management and rate policy allowed a decrease in domestic interest payment of 1.4%.
Despite this change, the debt continues to grow. The only way to solve this is with the reform that is in the Legislature,”
said Fallas.
The minister stressed that efforts are insufficient to control the Treasury’s debt, because without a reform, the government’s debt would reach 50% of the GDP.
In July, the debt amounted to 13.4 trillion, and the fiscal deficit reached 2.6% of GDP, of which 58% corresponds to interest payments.
Fallas stressed that maintaining this pace of income and expenses, might make this year end with a deficit below 6% of GDP.
By comparison, the figures for this year are similar to those of 2011, when the country managed to slightly curb the rapid growth of expenses over revenue.