NewsWhore
06-04-2009, 04:31 PM
Economist Hector Salcedo is predicting an activation of construction, vehicle sales and commercial activities as these sectors react to the decline in banking interest rates.
Salcedo said nevertheless there would be a decrease in imports and losses in foreign currency reserves.
He said that then one of the reasons for signing a new agreement with the International Monetary Fund (IMF) would be to have a sort of "economic cushion", with enough resources to maintain exchange rate stability in case there is a lack of external funding.
He said that even though the Dominican authorities foresee the entry of enough hard currency in the next few months, they need to take into account that the international economy is only just beginning to recover and its reactivation is expected to be long and slow.
"An agreement with the IMF would be welcome because the country's situation is very complicated," said Salcedo after commenting that several economic sectors continue to decline.
Salcedo felt unlikely an agreement with the IMF would mean an increase in taxes since this would be in contradiction with the need to stimulate productive sectors.
More... (http://www.dr1.com/index.html#3)
Salcedo said nevertheless there would be a decrease in imports and losses in foreign currency reserves.
He said that then one of the reasons for signing a new agreement with the International Monetary Fund (IMF) would be to have a sort of "economic cushion", with enough resources to maintain exchange rate stability in case there is a lack of external funding.
He said that even though the Dominican authorities foresee the entry of enough hard currency in the next few months, they need to take into account that the international economy is only just beginning to recover and its reactivation is expected to be long and slow.
"An agreement with the IMF would be welcome because the country's situation is very complicated," said Salcedo after commenting that several economic sectors continue to decline.
Salcedo felt unlikely an agreement with the IMF would mean an increase in taxes since this would be in contradiction with the need to stimulate productive sectors.
More... (http://www.dr1.com/index.html#3)