Measures 'tough but necessary'

[NewsWhore]

Central Bank Governor Hector Albizu Valdez says the increase in interest rates and changes in legal procedures are tough fiscal policies, but these moves are necessary in order to maintain micro-economic stability. Albizu added that these measures are transitory, though unavoidable. He said that once markets return to normal the measures would be reviewed to determine if they are necessary. The governor explained that the international market is still unstable, and this forces the Central Bank to preserve the DR's economic stability with these policies. Speaking on the economy, Albizu said the DR registered 7.5% economic growth in the first semester of the year and between January and September 2008 the DR experienced a 5.4% growth rate. He expects the DR to register 5% growth by the end of the year. The governor said that the Central Bank's stock debt went from RD$169,829 million to RD$190,725 million, with a 3% monthly interest rate. Accordingly, foreign direct investment passed the US$2.353 million mark, registering a US$1.3 increase. Albizu expects investments to pass the US$3 billion mark by the end of the year. Central Bank revenues registered US$3.372 billion, for a 4.7%, while remittances registered US$2.330 billion, for a 5.1% increase.

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