Dominican Republic

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Risk Management

Financing Source Amount Total Debt Share ATM Average Time to Refix Share of Variable Debt Weighted Average Interest Rate
Total Public Debt 38,575 100% 10.9 10.0 13.1% 7.1%
Total Domestic Debt 12,716 33% 6.7 6.7 1.4% 10.3%
Commercial Banks 962 2.5% 3.7 3.3 18.6% 7.6%
Bonds 9,478 24.6% 7.9 7.9 0% 10.8%
Recap Bonds 2,352 6.1% 2.8 2.8 0% 9.1%
Total External Debt 25,859 67% 13.0/td> 11.6 18.8% 5.5%
Commercial Banks 8 0% 1.2 0.5 100% 6.6%
Bilaterals 1,740 4.5% 6.1 5.9 5.6% 3.1%
Bonds 18,356 47.6% 15.3 15.3 0% 6.6%
Multilaterals 5,122 13.4% 8.0 1.8 80.5% 3%
Suppliers 6 0% 0.5 0.5 0% 0%
Total Public Debt excluding Recap Bonds 36,300 94.1% 11.4 10.5 13.9% 6.9%

1Preliminary figures in millions (USD) as of June 30, 2020

The exchange risk refers to changes in the value of debt due to variations in the exchange rate of the peso against the different foreign currencies that make up the debt portfolio. This risk is measured through the proportion of debt denominated in foreign currency within the total portfolio.

Interest rate risk measures the risk of rising interest service due to the increase in the interest rates to which the debt portfolio is linked. To measure this risk we use three main indicators: 1. The proportion of debt at a variable rate within the total portfolio. 2. The proportion of debt that changes interest rates in a year. 3. Average time to refixing.

Refinancing risk refers to the risk of not obtaining the resources to repay debt maturities, or that they are obtained at very high rates given a high concentration of maturities in the short term or in a specific period. To measure this risk we use several indicators: 1. The proportion of the portfolio that expires in the next 12 months (short term), 2. The average time to maturity. 3. Analysis of the maturity concentration in the amortization profile.


The Medium Term Public Debt Management Strategy comprises the major strategic guidelines that will guide the public debt management for the period 2019-2020, among which we highlight:

  1. Reduce currency risk, by decreasing the proportion of debt denominated in foreign currency.
  2. Development of the local capital market.
  3. Diversify funding sources, by maintaining a presence in international capital markets.
  4. Maintain longer maturities for both external and domestic financing, and implement liability management operations that reduce exposure to refinancing risk.
  5. Structure the debt maturity profile to reduce fiscal pressures by debt service in a specific year or month.

To monitor the implementation of the strategy, the Government has defined indicative ranges for a set of indicators expressing the targets in terms of the structure of the portfolio to be achieved in the medium term.



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