Quasi-fiscal deficit under control

[NewsWhore]

Central Bank Governor Hector Valdez Albizu explained the government's plan to manage the quasi-fiscal deficit of approximately RD$160 million over a five to 15 year period, following recommendations from local and International Monetary Fund advisors. The quasi-fiscal deficit is made up of certificates of deposit for money deposited in the Central Bank vaults. He said that they have already converted most of the CDs that are now three-year terms, many with yields of 11%, which is much less than the 58% peak yield that Central Bank CDs paid towards the end of the Hipolito Mejia administration. Present interest rates are 24 months CDS with a yield of 14%, 30 month CDS at 16%. Valdez explained that the terms are being extended. He also explained that the government expects revenues to be derived from the sale of government property under the Copra plan, which has already raised RD$1.5 billion in revenues as a result of sale of property from collapsed commercial banks.

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