Last week, Congress approved the 2023 National Budget Law (No. 36622). This law contemplates a fiscal deficit of RD$207.6 billion (3.0% of GDP) and financial applications of RD$155.7 billion which results in a total financing need of RD$363.3 billion.

Now, the Public Debt Office must plan how to fund these needs, balancing their risks and maintaining sustainable debt parameters. To do so, they evaluate their risk indicators: Debt to GDP, interests over fiscal revenues, debt cost (weighted average interest rates), weighted average to maturity, and foreign currency debt ratio.

Write a two-page recommendation to the Public Debt Office on how to contract loans and/or bonds for the next year (including the exact amount recommended for each financing instrument). Evaluate risk indicators performance in the last 5 years and incorporate them into your analysis. Explain how these indicators would be affected given your recommendation. Consider investigating next years market expectations on financial conditions from external and domestic points of view.