The Autonomous Fiscal Council warned Tuesday about the effects of the additional borrowing project for US$6.200 million. Gross debt would reach up to 43.6% of GDP in 2026.
CFA president Paula Benavides appeared before the Chamber’s Finance Committee to explain the project’s rationale. She said the borrowing responds to a larger effective deficit, exchange rate effects and liquidity needs. Benavides stated debt would rise from 43.1% to 43.4% of GDP, or 43.6% if growth is only 1.7%. She added that operating near the 45% prudent threshold “is not innocuous” and permanently raises interest spending. On the same day Finance Minister Jorge Quiroz issued a decree setting a structural deficit path from -2.6% this year to -1.5% in 2030 while keeping the debt anchor at 45% of GDP.
