Dominican Senate Raises Public Debt Limit

• In an extraordinary session on Monday, September 15, 2025, the Senate of the Dominican Republic urgently approved an amendment to Law 90-24, allowing the Executive Branch to issue and place public debt securities. The amendment raised the public debt ceiling to RD$361.618 billion, adding over RD$10 billion to the previously authorised limit. 
• Law 90-24 established the fiscal rule and was approved by Congress in July 2024. It established a real expenditure growth cap of 3% (7% in nominal terms) and a debt anchor of 40% of GDP by 2035.
• The Government, through President Luis Abinader, justified the measure as part of a fiscal policy "counter-cyclical" aimed at mitigating the effects of the international situation, boosting the economy and guaranteeing sustainability in public finances.
• The amendment raises the debt ceiling from RD$350Bn to RD$361.618Bn, adding over RD$10Bn to the previously authorised limit. Despite intense debate and opposition from Senator Edward Espíritusanto, who criticised the measure as “financial improvisation” and a growing reliance on debt, the bill passed with a majority vote.
• Currently, the Dominican Republic’s fiscal strength reflects improvements in fiscal deficit and debt trends since the pandemic. However, it still faces a shallow revenue base and high exposure to foreign-currency borrowing, which contributes to weaker debt affordability metrics relative to peers. The sovereign debt level in absolute terms and interest burdens are high relative to government revenue.
• That said, the share of foreign currency debt continues to decline gradually, through greater issuance of global peso-linked bonds in recent years.

(Sources: Dominican Today, Moody’s Investors Service & Fitch Ratings)