Govern­ment pro­po­ses ad­jus­ting pu­blic debt le­gis­la­ti­on

Times of Suriname - - ENGELS -

The Fi­nan­ce Mi­ni­stry re­cent­ly is­sued a press re­lea­se, in­di­ca­ting that the govern­ment will ask par­li­a­ment to ad­just the Pu­blic Debt Act so that the debt cei­ling can be rai­sed. The govern­ment ex­plai­ned that rai­sing the debt cei­ling is ne­ces­sa­ry be­cau­se the debt in lo­cal cur­r­en­cy or SRDs has go­ne up as a re­sult of the ri­sing ex­chan­ge ra­tes whi­le the gross na­ti­o­nal pro­duct (GNP) due to the ne­ga­ti­ve growth. The cur­rent debt cei­ling for the pu­blic debts of 60% of the GNP is get­ting clo­se to the ed­ge of a cliff which means that the op­por­tu­ni­ties for im­ple­men­ting a he­al­thy debt po­li­cy are al­so near the ‘danger zo­ne.’

The govern­ment re­por­ted­ly has sug­ge­sted rai­sing the en­ti­re debt cei­ling to 80% of the GNP. The debt cei­ling for in­ter­nal debt will al­so be rai­sed from 25% to 30% and the debt cei­ling for fo­reign debt will be rai­sed from 35% to 50%. This in­crea­se will re­por­ted­ly be tem­po­ra­ry.

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