NewsWhore
03-08-2010, 01:20 PM
The PLD-majority Congress has approved loans for US$2.05 billion and EUR9.4 million equivalent to RD$91.35 billion. In 2008 alone, the Congressmen approved US$549 million for the construction of road infrastructure, purchased eight Super Tucano airplanes, took on debt for the Pinalito dam and projects under the so-called Social Cabinet of the Presidency. In 2009, foreign borrowing reached US$720.7 million. The loans included US$272.3 million for the Coral Highway and the US$93.7 million for the Tucano airplanes.
Pedro Perez of the National Association of Shopping Malls says, "The present economic macro-economic stability has been maintained by the continuing debt-taking of the government. These debts are a cause for concern," said Perez.
Economy, Planning and Development Minister Temistocles Montas has argued that the government needs to continue to borrow to stimulate the economy.
El Caribe reports that in 2009, there were 26 approvals of loans, to the point some business leaders said the year should have been known as year of the festival of taking on debt.
The debt included EUR9.3 million to purchase military supplies for the border military corps, Cesfront. Also another loan for US$300 million for a program for liquidity to sustain growth. This in addition to US$80 million for the program for administration of disasters and emergencies, under the Institute of Hydraulic Resources (INDRHI).
The government Electricity Corporation (CDEEE) also benefited, as well as there were funds for the construction of several dams and loans for US$180 million. For the equipping of hospitals, the government approved US$200 million.
El Caribe reports that to tell by the pace of the loans taken in 2010, this year could set a new record for indebtedness. On Wednesday, the Congress approved in fast tracked a bill for US$1 billion in sovereign bonds.
On 9 November, the Central Bank announced a stand by arrangement with the IMF that would allow access to US$1.7 million in fresh funds. Of the US$1.7 billion, the government proposes to use US$450 million to compensate a deficit between spending and revenues in the National Budget.
The Father Juan Montalvo Center for Social Studies has also alerted that the government has had to destine 43% of tax revenues to pay its debts. Jesse Chavez, of the Center, said that the government in 2009 took on RD$40 billion more in debts than authorized to do by the National Budget.
More... (http://www.dr1.com/index.html#6)
Pedro Perez of the National Association of Shopping Malls says, "The present economic macro-economic stability has been maintained by the continuing debt-taking of the government. These debts are a cause for concern," said Perez.
Economy, Planning and Development Minister Temistocles Montas has argued that the government needs to continue to borrow to stimulate the economy.
El Caribe reports that in 2009, there were 26 approvals of loans, to the point some business leaders said the year should have been known as year of the festival of taking on debt.
The debt included EUR9.3 million to purchase military supplies for the border military corps, Cesfront. Also another loan for US$300 million for a program for liquidity to sustain growth. This in addition to US$80 million for the program for administration of disasters and emergencies, under the Institute of Hydraulic Resources (INDRHI).
The government Electricity Corporation (CDEEE) also benefited, as well as there were funds for the construction of several dams and loans for US$180 million. For the equipping of hospitals, the government approved US$200 million.
El Caribe reports that to tell by the pace of the loans taken in 2010, this year could set a new record for indebtedness. On Wednesday, the Congress approved in fast tracked a bill for US$1 billion in sovereign bonds.
On 9 November, the Central Bank announced a stand by arrangement with the IMF that would allow access to US$1.7 million in fresh funds. Of the US$1.7 billion, the government proposes to use US$450 million to compensate a deficit between spending and revenues in the National Budget.
The Father Juan Montalvo Center for Social Studies has also alerted that the government has had to destine 43% of tax revenues to pay its debts. Jesse Chavez, of the Center, said that the government in 2009 took on RD$40 billion more in debts than authorized to do by the National Budget.
More... (http://www.dr1.com/index.html#6)