NewsWhore
09-30-2008, 03:00 PM
Economist Bernardo Vega is in favor of the Dominican government signing an agreement with the International Monetary Fund as a way of demonstrating willingness to tighten its belt in order to tackle the difficulties that the economic crisis in the US will bring. "There is no real perception that the government is tightening its belt to confront the situation in the United States," he told Huchi Lora's CDN Radio talk show. He said the signing would restore confidence and reiterated the need for the government to reduce public spending.
Vega does not foresee problems with Dominican banking, despite the US financial crisis. He said that after the Baninter bank fraud scandal, rigorous regulations were instated aimed at keeping banking in order. He did say, however, that banks should be wary of receiving "hot money," and lending this out. Nevertheless, he predicted that there would be a decline in investment and exports of goods and services, as the market goes soft in the US.
Vega called for observing parallels between how the US and Europe are dealing with their own bank crisis and how the DR dealt with its own.
More... (http://www.dr1.com/index.html#4)
Vega does not foresee problems with Dominican banking, despite the US financial crisis. He said that after the Baninter bank fraud scandal, rigorous regulations were instated aimed at keeping banking in order. He did say, however, that banks should be wary of receiving "hot money," and lending this out. Nevertheless, he predicted that there would be a decline in investment and exports of goods and services, as the market goes soft in the US.
Vega called for observing parallels between how the US and Europe are dealing with their own bank crisis and how the DR dealt with its own.
More... (http://www.dr1.com/index.html#4)