Dominican Republic's state debt climbs by nearly $6 billion in six months

The Dominican Republic's state debt continued its upward trajectory in the first half of 2026, with the government borrowing nearly $6 billion, predominantly from the domestic market. This period saw the non-financial public sector debt (SPNF) grow by $5.82 billion, a 9.5% increase since December 2025. By June, the nation's total debt stood at $67.37 billion, representing 47.9% of its Gross Domestic Product (GDP).

The rise in debt was largely driven by new domestic commitments totaling $3.31 billion. The average interest rate for domestic financing in June was 10.8%, a slight increase from 10.7% in the same month last year. Of the domestic debt raised, 96.7% was through Ministry of Finance and Economy bonds. This influx of domestic financing caused the outstanding domestic debt to climb from $16.07 billion to $19.38 billion over the six months, a 20.6% surge. Consequently, domestic commitments now represent 13.8% of GDP, up from 12.6% in December, and their share in the state's financing portfolio increased to 28.8% from 26.1%.

External debt also saw an increase, albeit at a slower pace, rising by 5.5% in the first semester. The country's external borrowing grew from $45.48 billion in December 2025 to $47.99 billion in June 2026, an absolute increase of $2.51 billion. This expansion was mainly due to sovereign bond placements, which accounted for $2.60 billion. In local currency, the new debt amounts to over 344.5 billion pesos. The government has budgeted over 322.7 billion pesos for interest payments on public debt this year, having already paid 131.47 billion pesos by June.