Government of Ecuador calculates debt of up to 55.2% by 2022

Ecuadornews:

Quito -

The Government sees an increasing behavior of the debt to 2022.According to the analysis on the sustainability of the public debt thatconsists in the Cuatrianual Programming in a “stress scenario”, thepublic debt (external debt and internal debt) would reach levels close to the55.20% and public debt plus other obligations (oil pre-sales, Cetes, and more),at 63.11.

It also manages an average scenario in which itwould reach in 2022 to 51.83% and an optimist in which it would be 48.65%.

The report proposes to assess whether 40% of GDPconstitutes an adequate level of indebtedness, if it is a natural limit ofdebt. Until 2021, the limit of indebtedness that was 40% was canceled, but theidea that had been disclosed was that the percentage goes down until returningto 40%.

To avoid these “stress scenarios”policies of robust economic growth must be applied, says Finanza.

It also explains that a change in the growthforecasts, for example downward, would generate pressures on the accumulationof public debt. (I)

Source: https://www.eluniverso.com/noticias/2018/11/07/nota/7036668/gobierno-calcula-deuda-hasta-552-2022