Tuesday, October 23, 2007

Debt reduction for fiscal year 2008 

Today we learn from the El Universal that the debt payments in 08 will be $7.45 billion or 12% of the budget, $1.81 billion for the internal and $5.64 billion for the external debt. The latter being divided in $2.51 in debt repayment and $3.08 billion in interest paid.

Now what is interesting is how this will be financed. 54% will be paid in cash and the rest will be refinanced (ie more loans with better interests). Eventually there are plans to only pay without the need to even refinace.

Venezuela is one of the countries with the lowest external debt per nominal GDP, with the latter growing exponentially (almost 30% each year) it is good to know that overall external debt is also falling as well.


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