NewsWhore
03-29-2010, 03:40 PM
The government announced today that it sent a letter to International Monetary Fund (IMF) managing director Dominique Strauss-Kahn on March 19 requesting flexibility in its commitments with the Stand-by arrangement in effect since last October. The letter will be reviewed on 8 April, according to Economy Minister Temistocles Montas.
The letter of intent, signed by Central Bank Governor Hector Valdez, Hacienda Minister Vicente Bengoa and Economy Minister Temistocles Montas can be read in today's print version of El Caribe newspaper and at the Central Bank website at www.bancentral.gov.do (http://www.bancentral.gov.do)
In the letter, the Central Bank forecasts that inflation in 2010 will be 6-7%, up from 5.7% in 2009. Growth is expected to total 3 to 4% in 2010, compared to 3.5% in 2009.
The officials maintain that most objectives have been fulfilled, but that there was a transitional deviation in a fiscal goal and a small delay in the payment of internal arrears. The risks that they call implicit are in the execution of the budget and include the timely access to financing, and the additional expenses relating to aid and reconstruction in Haiti
Hoy newspaper analysts interpret it as meaning that electricity rates will go up after the May election, as the government seeks to reduce arrears with the power generation companies. The letter says the government will adopt a "technical tariff to cover the cost of generation, transmission and distribution and losses due to the inefficiencies in the system".
The electricity distribution companies also need to increase the number of regulated clients from 1.4 million in 2009 to 1.9 million by September of this year. The Dominican government operates all power distribution companies in the DR.
"The performance criteria for the non-accumulation of external arrears were met, but the performance criteria for the non-accumulation and the liquidation of the internal arrears with the electricity generating companies was not fulfilled, due mainly to fuel costs that were greater than estimated". The monetary authorities argue and insist that the government is up to date with the generators. They announced that the government would apply a more flexible mechanism for setting electricity prices, with the aim of adopting a "technical tariff" (to cover the cost of generation, transmission and distribution as well as the losses of efficiency in the system). These will begin in the second half of the year.
Hoy reports that the government also commits to an increase tax collections, with the aim of collecting a further RD$2.7 billion in 2010. The government will issue at least US$600 million in sovereign bonds this year of US$1 billion approved by Congress.
More... (http://www.dr1.com/index.html#5)
The letter of intent, signed by Central Bank Governor Hector Valdez, Hacienda Minister Vicente Bengoa and Economy Minister Temistocles Montas can be read in today's print version of El Caribe newspaper and at the Central Bank website at www.bancentral.gov.do (http://www.bancentral.gov.do)
In the letter, the Central Bank forecasts that inflation in 2010 will be 6-7%, up from 5.7% in 2009. Growth is expected to total 3 to 4% in 2010, compared to 3.5% in 2009.
The officials maintain that most objectives have been fulfilled, but that there was a transitional deviation in a fiscal goal and a small delay in the payment of internal arrears. The risks that they call implicit are in the execution of the budget and include the timely access to financing, and the additional expenses relating to aid and reconstruction in Haiti
Hoy newspaper analysts interpret it as meaning that electricity rates will go up after the May election, as the government seeks to reduce arrears with the power generation companies. The letter says the government will adopt a "technical tariff to cover the cost of generation, transmission and distribution and losses due to the inefficiencies in the system".
The electricity distribution companies also need to increase the number of regulated clients from 1.4 million in 2009 to 1.9 million by September of this year. The Dominican government operates all power distribution companies in the DR.
"The performance criteria for the non-accumulation of external arrears were met, but the performance criteria for the non-accumulation and the liquidation of the internal arrears with the electricity generating companies was not fulfilled, due mainly to fuel costs that were greater than estimated". The monetary authorities argue and insist that the government is up to date with the generators. They announced that the government would apply a more flexible mechanism for setting electricity prices, with the aim of adopting a "technical tariff" (to cover the cost of generation, transmission and distribution as well as the losses of efficiency in the system). These will begin in the second half of the year.
Hoy reports that the government also commits to an increase tax collections, with the aim of collecting a further RD$2.7 billion in 2010. The government will issue at least US$600 million in sovereign bonds this year of US$1 billion approved by Congress.
More... (http://www.dr1.com/index.html#5)