NewsWhore
09-02-2009, 05:10 PM
The president of the Association of Industries of the Dominican Republic (AIRD), Manuel Diez Cabral expressed his concern that funds to be received following the signing of a stand by agreement with the International Monetary Fund (IMF) be used by the government to maintain its high level of current spending and even increase these expenditures. In an interview at El Caribe, Diez commented: "Our concern is that the money comes in and then suddenly you see the current spending of the government take off again, and the only thing that we will be able to show for it are payroll checks," he said.
He said the cash injection will stimulate the economy, but in six months time the deficit wil be back. "It would be putting a six month patch or one for as long as the stimulus lasts without changing anything," he alerted.
Current expenditures make up 66% of the present RD$329.99 billion budget or RD$217.17 billion. Capital spending is but 20% or RD$65.61 billion and debt payment is 14% or RD$47.20 billion.
The IMF agreement would open doors to an injection of US$1.5 billion from different multilateral organizations. Upon announcing talks for the agreement, the government said it would then seek to issue US$1 billion in sovereign bonds.
Diez Cabral said the funds should be invested in construction projects that create jobs and increase consumption while developing infrastructure. Circe Almanzar, vice president of the AIRD, called for the construction of the needed highways in tourist zones.
More... (http://www.dr1.com/index.html#6)
He said the cash injection will stimulate the economy, but in six months time the deficit wil be back. "It would be putting a six month patch or one for as long as the stimulus lasts without changing anything," he alerted.
Current expenditures make up 66% of the present RD$329.99 billion budget or RD$217.17 billion. Capital spending is but 20% or RD$65.61 billion and debt payment is 14% or RD$47.20 billion.
The IMF agreement would open doors to an injection of US$1.5 billion from different multilateral organizations. Upon announcing talks for the agreement, the government said it would then seek to issue US$1 billion in sovereign bonds.
Diez Cabral said the funds should be invested in construction projects that create jobs and increase consumption while developing infrastructure. Circe Almanzar, vice president of the AIRD, called for the construction of the needed highways in tourist zones.
More... (http://www.dr1.com/index.html#6)