• The Secretary of State for Economy and Business Support has presented the Report on the situation of external debt in the International Development Cooperation Commission of the Congress of Deputies
  • He has also reported on the management of the 28 debt conversion programs signed by Spain, which involve a remission of 1,347 million euros and making 920 million available for financing development projects in the target countries

The Secretary of State for Economy and Business Support, Ana de la Cueva, has presented the main data and lines of action in the field of external debt management at the International Development Cooperation Commission of the Congress of Deputies.

In the management of external debt, the Secretary of State has highlighted the importance of conversion programs that, in addition to forgiving a portion of the debt, allow the promotion of priority investment projects for the development of beneficiary countries.

Ana de la Cueva has pointed out that, currently, Spain has 28 debt conversion programs in force, of which 16 are subscribed with African countries and 11 with Latin American countries These programs involve a debt forgiveness worth 1,347 million euros and availability of 920 million for project financing. Under these programs 47 projects have already been financed in the educational field, for an amount exceeding 100 million euros, followed by the transport sector, with 60 million, the sanitary, with 54 and the water and sanitation, with 48 million euros.

Ana de la Cueva has communicated the next actions of the Secretary of State in the field of external debt management, among which the culmination of one of the debt conversion programs that Spain maintains with Honduras stands out. In the scope of this program, more than 60 million dollars have been allocated to finance projects aimed at strengthening the infrastructure and equipment of educational centers, which will benefit more than 26,000 people, as well as the financing of environmental projects and promotion of renewable energy.

He has also reported on the negotiation of a new conversion program with the Republic of Guinea-Bissau for an amount of $ 12 million. The objective of the Secretary of State is to involve the United Nations World Food Program in the management, with the objective that resources be allocated to the fight against malnutrition, one of the country's main priorities.

In this regard, the Secretary of State has valued the collaboration with international organizations in the development of some of these conversion programs and that represent an innovative management modality. This is the case of the agreements signed with Cameroon, Ethiopia and the Democratic Republic of the Congo, which have been articulated through the “Debt for Health” initiative of the Global Fund to Fight AIDS, Tuberculosis and Malaria.

External debt of Spain as creditor

As of August 31, 2018, Spain's external debt as a creditor amounted to 14,151 million euros, which represents a 1.09% reduction compared to December 14,307 million in 2017. The downward trend of the year is thus prolonged previous, in which the volume of debt was reduced below 15,000 million euros.

By categories, the most important rubric remains the so-called “other types of debt”, which represents almost 47% of the total, as a result of the financial support granted to Greece in 2010 and 2011. The next item corresponds to the debt of the Fund of Internationalization of the Company (FIEM), with 31% of the total, followed by the debt secured by the State by CESCE, with 19% and that of the Fund for the Promotion of Development (FONPRODE), with 3%.



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