Danyael posted:VVP posted:D2 - 2% external vs 16% internal is good? The problem it looks like they are not able to secure external funding at consessional rates. The only benefit of the internal funding is that it will be paid back in G$.
So who is the Finance guru on this site. I would like to hear some opinions.
At 40 percent of GDP Guyana's external debt is not suffocating. Large external debt is an actual transfer of real assets to an external entity in the paying back. It can ruin a nation if growth is slowed and it begins to accrue interests as it fall behind in payments. Internal debt is what the nation owes itself ie credit card, student loans and does not incur real asset loss. It is merely redistribution of monies in the state.
Commercial banks hold most of the domestic debt. Many of the commercial banks have foreign interests meaning they move the profits out of Guyana.
I wish if TK was here to discuss this.