New Rules for Issuing Gov’t Debt

Gov. Wanda Vázquez sent a bill to the Legislative Assembly to set limits on government debt issues and restrict the use that will be given to the money borrowed.

 

The bill defines the collections or transactions that will be considered when calculating the margin established by the Constitution to issue debt, and states that the government can only borrow to invest in capital improvements.

 

The proposal will also establish that the government may refinance its current loans only if it achieves savings in the payment of interest, and that no loan or bond may have a life of more than 30 years.

 

Source: The Weekly Journal

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