The region has found in international loans an excellent source of investment income. However, some Latin American countries with higher debt have ended up unable to pay their obligations.
These are the Latin American countries with the highest external debt, according to World Bank figures and their relationship to GDP. Photo: Pexels
LatinAmerican Post | Santiago Gómez Hernández
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Leer en español: Infografía: Países Latinoamericanos con mayor deuda
International credits, whether they are credits from the World Bank, the International Monetary Fund, or the sale of bonds, have been an agile and fast method as Latin Americans have achieved cash flow. However, the debts of some of these have reached figures that are difficult to pay and, compared to GDP, almost exceed 50% of everything that is produced in the nation.
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In economics, there is no exact number where the ratio of debt to the size of the economy (GDP) should be. However, to be part of the European Union, the group requires that countries do not have a debt greater than 60% of their GDP.