The island nation of Canary has been in a state of crisis since the tsunami and tidal wave struck last year, as the country faces an ongoing financial crisis and a possible return to economic chaos.
The earthquake and tsunami in May 2016 triggered widespread damage to the country, which is the third poorest in South America.
Canary officials have said the disaster has left the country with a debt of more than $1.5bn, and the country has been seeking foreign aid to cover its mounting debts.
In a statement released on Thursday, the government of Canaries President José López-Canela said the country’s economy has been devastated by the earthquake and the tsunami, and it is in a difficult financial situation.
“In the immediate aftermath of the earthquake, the national economy has lost $1 billion.
The country is in severe financial difficulties, with the national debt of $1,570bn, the country is facing a severe debt crisis, and there is an increased risk of default,” the statement said.
The national debt has risen by almost $1bn since the earthquake because of the huge debt owed to the banks and businesses, and in addition to the cost of relief, the costs of rebuilding the damaged homes and infrastructure.
López, who was elected to his second term in September 2016, said the economy was in a “critical state”, and he said he would meet with the heads of the central banks of the affected countries on Monday to discuss the possibility of a nationalised economy.
The statement also warned of the risk of a return to financial crisis, saying the country will have to pay back its debt in the medium term, while also facing economic hardships in the short term.
“The national economy is currently in a critical state,” the government statement said, adding that the country was facing a financial crisis as a result of the tsunami.
“We are in a vulnerable situation.
This is the case because of a lack of financing, the loss of funds, and lack of international support, it will require a nationalisation of the economy.”
Lópés-Canary, who is the countrys president for three terms, was elected in May last year with an absolute majority.