NewsWhore
09-22-2008, 03:00 PM
Hacienda Minister Vicente Bengoa said that the American Chamber of Commerce in Santo Domingo should advise the US government to sign an agreement with the International Monetary Fund, as reported in Hoy. He said that this year the United States has doubled it fiscal deficit compared to last year and its public debt now stands at around US$8.4 trillion, and could reach US$9 trillion by the end of the year, or 64% of the Gross Domestic Product. He said the US should sign with the IMF because the deficit of the current account of the balance of payments is more than US$700 billion. "And in the past 13 months the financial crisis has led to the bankruptcy or merger of 16 banks or mortgage institutions, of the category of Lehman Brothers, Merrill Lynch and Bear Sterns," he said. That is in addition to 15 financial institutions that have suffered major losses.
Bengoa attributed many of the DR's financial difficulties to the US economic crisis. He said that for this reason, the Dominican business sector should call for the US to sign an agreement with the IMF so that this financial overseer can intervene in the US economy.
The recommendation was made after several spokesmen for Dominican banks suggested that the Dominican government should sign a monitoring agreement with the IMF, while others have suggested a broader type of agreement. Business leaders claim that the Dominican government has not been able to control its superfluous spending alone. In a press release, the Commercial Banks Association (ABA) said that the country requires measures that contribute to strengthen the confidence in macroeconomic policy. They indicate that the most appropriate step would be to sign a program for the IMF to monitor governmental decisions on taxation and monetary policy.
The International Monetary Fund Executive Board has reported that Dominican authorities have expressed willingness to engage in post-program monitoring with the Fund, following the completion of the three-year Stand-by Arrangement for RD$437.8 million (about US$688.6 million) in January 2008.
More... (http://www.dr1.com/index.html#2)
Bengoa attributed many of the DR's financial difficulties to the US economic crisis. He said that for this reason, the Dominican business sector should call for the US to sign an agreement with the IMF so that this financial overseer can intervene in the US economy.
The recommendation was made after several spokesmen for Dominican banks suggested that the Dominican government should sign a monitoring agreement with the IMF, while others have suggested a broader type of agreement. Business leaders claim that the Dominican government has not been able to control its superfluous spending alone. In a press release, the Commercial Banks Association (ABA) said that the country requires measures that contribute to strengthen the confidence in macroeconomic policy. They indicate that the most appropriate step would be to sign a program for the IMF to monitor governmental decisions on taxation and monetary policy.
The International Monetary Fund Executive Board has reported that Dominican authorities have expressed willingness to engage in post-program monitoring with the Fund, following the completion of the three-year Stand-by Arrangement for RD$437.8 million (about US$688.6 million) in January 2008.
More... (http://www.dr1.com/index.html#2)