More

    Costa Rica Economy Winning but Still Struggling with Public Debt

    Must Read

    The Power of Fruits: They Will Make You Healthy

    Without a doubt, fruits are the most attractive food group and they...

    Being a Man does not make you Immune to Breast Cancer.

    Although breast cancer is much more common in women. Men can have...

    Relax in the calm waters of Potrero Beach in Guanacaste

    Immersed next to Playa Flamingo in the quiet town of Potrero, Playa Potrero is quiet and serene
    TCRN STAFFhttps://www.TheCostaRicaNews.com
    Creating a Conscious alternative news network that we feel the world needs. Pura Vida!

    Costa Rica economy and GDP growth rate are seeing better management as government struggles to navigate the Global Economic Crisis.

    Costa Rica’s domestic and foreign debt has been growing rapidly. To date, the debt represents 49.7% with respect to domestic industry.

    According to the Comptroller General of the Republic (CGR), 2011 internal and external obligations of the public sector, including the financial sector, amounted to ¢ 10,301,396 million, reflecting a greater relative weight in relation to gross domestic product (GDP) .

    Furthermore, of the 19 loans in execution, for a total of $ 1,577,999,718.84 the country has disbursed $ 654,404,825.03, with $ 923,594,893.81 in reserve.

    The comptroller does see physical and financial progress, however, but some problems have come to light. There were management problems, government contracting and environmental factors that have caused problems over the past year.

    Despite criticism, Treasury borrowing through loans as a mechanism argues that it is “cheaper” and notes that although the projects not running do not represent an additional expense because the country pays the interest on the debt on the amounts disbursed.

    With the growth of the debt, the Treasury raised point of the effects of the economic crisis, and high growth in public spending, which have led to higher financing needs and pressures on government debt management.

    Moreover, during the previous year a decrease debt product, Eurobond payment and amortization of liabilities of the Central Bank of Costa Rica, did not reverse offset actual increases that occurred in the domestic debt that finance the Government’s needs.

    Such behavior prompted both government debt, plus the rest of the public sector – including the financial sector – representing ¢ 10,301,396 million reflecting a real growth of 12.1%, higher than the variation in 2009 and 2010, and 7, 9 percentage points higher than the growth shown by GDP.

    To this growing debt, you must add the $ 4,000 million that will put the country at international level – can place up to $ 1,000 million per year – and the progressive of domestic borrowing during the 2012, has allowed the running costs.

    However, given the non-approval of tax reform, the Ministry of Finance, took as plan “B” the placement of Eurobonds. Analysts have argued that there are structural solutions the country needs and that the only thing the government did was “buying time”.

    Another reflection of growing debt is the national budget, where 43% of the 6.4 billion that the government planned for 2013 will be financed with debt.

    The Costa Rica News (TCRN)
    San Jose Costa Rica

    - Advertisement -
    - Advertisement -

    Latest News

    The Power of Fruits: They Will Make You Healthy

    Without a doubt, fruits are the most attractive food group and they...

    Being a Man does not make you Immune to Breast Cancer.

    Although breast cancer is much more common in women. Men can have it too. It occurs most...

    Relax in the calm waters of Potrero Beach in Guanacaste

    Immersed next to Playa Flamingo in the quiet town of Potrero, Playa Potrero is quiet and serene

    Live the experience of Venturing into a Volcanic rock Cenote in Huetar territory

    In the Huetar indigenous territory, there is Tabacari, in Spanish "Santuario de las Aguas" (Water sanctuary), a...

    Playa Carrillo a Beautiful Tropical Paradise for You

    Carrillo Beach. This beautiful beach is located on the Pacific Ocean in North Costa Rica, very close to Playa Sámara, about 50 km from the city of Tamarindo
    - Advertisement -

    More Articles Like This

    - Advertisement -
    Language »