NewsWhore
12-03-2009, 12:50 PM
The Ministry of Hacienda will be contracting loans with international commercial banks for US$1.272 million in 2010. According to the 2010 National Budget sent by the Presidency to Congress, 14 loans need to be approved, 13 of which will finance infrastructure works and one would be used to equip the Border Control Force (Cesfront).
The new loans are:
Guaigui dam: US$70 million (INDRHI). Hermanas Mirabal aqueduct: US$50 million (INAPA). Nagua aqueduct: US$20 million (INAPA). Moca aqueduct: US$40 million (INAPA). Peravia aqueduct: U$110 million (INAPA). Puerto Plata aqueduct: US$100 million (INAPA). Santiago aqueduct: US$29 million (INAPA). Pinalito hydroelectric Dam: US$155 million (CDEEE). Las Placetas hydroelectric dam: US$98 million (CDEEE). Duarte Corridor: US$67 million (SEOPC). Viadom Samana highway: US$400 million (SEOPC). Low-income housing: US$90 million + US$80 million (INVI). Border security equipment: US$12.8 million.
Clave newspaper reporter Edwin Ruiz, nevertheless, points out that the international banking loans are a horn of plenty for the government, supplying an endless source of funds tied to contracting works and goods and services, often contracted without tenders.
The cost of these loans that would be negotiated for 7-year terms, with a 2-year grace period, is Libor plus "a margin compatible with the interest rate in effect for the DR." This plus the payment of commissions according to market.
Clave reports that in 2008, the Ministry of Hacienda reports having taken on US$686.9 million in new debts.
Clave reports that taking on international loans during the Hipolito Mejia government (2000-2004) was widely criticized by members of the ruling PLD when in opposition. Mejia's government borrowed with the Deutsch Bank, Sociedad Anonima Espanola and the Bilbao Vizcaya Argentaria for similar terms, and without tenders. The newspaper says that that practice led the foreign debt with private senders to increase from a share of 19% of foreign loan borrowing to 35%, or 226% more foreign debt, to US$2,256.5 million.
Interestingly, the newspaper quotes a leonelfernandez.com campaign page where Fernandez, who is into his second term, apparently criticizes this debt taking and the burden on the national budget. But instead of correcting the practice, his administration takes it a step further and announces new plans to issue sovereign bonds for US$600 million in 2010, and then for US$500 million in 2011 and 2012.
More... (http://www.dr1.com/index.html#4)
The new loans are:
Guaigui dam: US$70 million (INDRHI). Hermanas Mirabal aqueduct: US$50 million (INAPA). Nagua aqueduct: US$20 million (INAPA). Moca aqueduct: US$40 million (INAPA). Peravia aqueduct: U$110 million (INAPA). Puerto Plata aqueduct: US$100 million (INAPA). Santiago aqueduct: US$29 million (INAPA). Pinalito hydroelectric Dam: US$155 million (CDEEE). Las Placetas hydroelectric dam: US$98 million (CDEEE). Duarte Corridor: US$67 million (SEOPC). Viadom Samana highway: US$400 million (SEOPC). Low-income housing: US$90 million + US$80 million (INVI). Border security equipment: US$12.8 million.
Clave newspaper reporter Edwin Ruiz, nevertheless, points out that the international banking loans are a horn of plenty for the government, supplying an endless source of funds tied to contracting works and goods and services, often contracted without tenders.
The cost of these loans that would be negotiated for 7-year terms, with a 2-year grace period, is Libor plus "a margin compatible with the interest rate in effect for the DR." This plus the payment of commissions according to market.
Clave reports that in 2008, the Ministry of Hacienda reports having taken on US$686.9 million in new debts.
Clave reports that taking on international loans during the Hipolito Mejia government (2000-2004) was widely criticized by members of the ruling PLD when in opposition. Mejia's government borrowed with the Deutsch Bank, Sociedad Anonima Espanola and the Bilbao Vizcaya Argentaria for similar terms, and without tenders. The newspaper says that that practice led the foreign debt with private senders to increase from a share of 19% of foreign loan borrowing to 35%, or 226% more foreign debt, to US$2,256.5 million.
Interestingly, the newspaper quotes a leonelfernandez.com campaign page where Fernandez, who is into his second term, apparently criticizes this debt taking and the burden on the national budget. But instead of correcting the practice, his administration takes it a step further and announces new plans to issue sovereign bonds for US$600 million in 2010, and then for US$500 million in 2011 and 2012.
More... (http://www.dr1.com/index.html#4)