A high-ranking official from the president's administration stated today during a closed briefing that the common understanding and fear of external debt among developing countries with ambitions for rapid growth is unjustified.
According to the official, external debt is a necessity, as seen in all successful countries. It is essential to attract long-term, low-cost funds from abroad for growth. However, it is crucial to allocate these funds to projects that will yield returns.
The official emphasized the difference between personal and national debt, urging journalists not to contribute to fearmongering. He highlighted that external debt can create opportunities, new resources, money, and boost the economy when invested in productive projects.
Referring to the repayment amounts, he mentioned that this year's external debt payments will amount to $474.9 million, and $538.5 million in the following year.
While acknowledging the growth of internal debt causing concern, the official stressed the importance of borrowing at low rates in the external market. He concluded by stating that external debt should not be feared but utilized with the condition that all funds are directed towards high-yield investments.
