EscucharSAN JOSE - The government of Costa Rica will sell off several state companies to challenge the staggering domestic debt, $4 billion, which accounts for 30 percent of the overall expenses of the national budget.
The Minister of Finance, Leonel Baruch, said that other measures to reduce the debt include controlling inflation, promoting economic growth, and exchanging internal debt for external debt.
Minister Baruch did not discard new taxes among the measures to be taken by the administration of President Miguel Angel Rodríguez, who was sworn into office on Friday.
According to the official, the domestic debt is ``the major and most serious problem from the financial point of view'' that the administration faces.
Late in 1996, ex-President José María Figueres had warned the nation about an unusual increase of the domestic debt and announced that in order to lower it several state companies should be sold.
The Minister of the Presidency, Roberto Tovar, said that the companies likely to be sold include the International Bank of Costa Rica and the National Liquor Factory.
``There are also other state assets (companies) which must be subjected to a mutual (government-opposition) agreement process in order to decide their sale,'' Minister Tovar added.
However, he pointed out that President Rodríguez is not in favor of selling the Costa Rican Electricity Institution (ICE in Spanish), which has monopolies in the production of energy and telecommunications.
On the other hand, President Rodríguez has already hinted at the possibility of selling one of the two bands for cellular phones. The other one will remain as an ICE asset.
Moreover, there are plans to end the insurance monopoly by selling up to 40 percent of the shares of the National Insurance Institution (INS in Spanish), an initiative of the Figueres administration which Rodríguez intends to see through.
Warning to officials
In one of its first resolutions, the Rodríguez administration ruled that any official who ``unduly'' takes advantage of his position will be immediately dismissed.
In a series of guidelines for officials, President Rodríguez said that perks obtained through the holding of a position also include any benefits for relatives or friends.
The presidential decision, which is a preview of a bill currently discussed at the Legislative Assembly, prohibits government officials from directly or indirectly taking part in financial operations taking advantage of confidential knowledge they have because of their privileged positions.
The officials are not to request contributions for travel, cash contributions, or fees for lectures, talks, or any other such activity. The are also expressly prohibited from asking for or accepting, directly or indirectly, gifts, donations, or tips.
