NewsWhore
03-04-2010, 02:40 PM
Economist Bernardo Vega says that the government has waited for the worst moment to place US$1 billion in sovereign bonds. The former governor of the Central Bank said that a month ago, the interest rate would have been 8%, but now it will be more due to the chilling effects of the financial crisis in Greece on investors.
He complained that the Fernandez administration continues to source expensive international financing like this sovereign bond placement. He urged the government to consider the long-term implications of that debt, including the percentage of government revenues that will be have to set aside to pay for this. He said that already this year, 40% of tax collections have been assigned to pay for the foreign debt.
Speaking on Huchi Lora's Channel 11 El Dia TV program yesterday, Vega expressed his concern about the financing of the second line of the Santo Domingo metro. He commented that it appears that contrary to what the President had said initially, private investors have not shown interest and the government would continue with the construction of the second line of the Santo Domingo metro following the scheme of the first line - international borrowing and using tax revenues.
More... (http://www.dr1.com/index.html#8)
He complained that the Fernandez administration continues to source expensive international financing like this sovereign bond placement. He urged the government to consider the long-term implications of that debt, including the percentage of government revenues that will be have to set aside to pay for this. He said that already this year, 40% of tax collections have been assigned to pay for the foreign debt.
Speaking on Huchi Lora's Channel 11 El Dia TV program yesterday, Vega expressed his concern about the financing of the second line of the Santo Domingo metro. He commented that it appears that contrary to what the President had said initially, private investors have not shown interest and the government would continue with the construction of the second line of the Santo Domingo metro following the scheme of the first line - international borrowing and using tax revenues.
More... (http://www.dr1.com/index.html#8)