NewsWhore
10-08-2010, 04:40 PM
President Leonel Fernandez says the issue of the country's foreign debt is political, and the opposition is exaggerating and creating bogeymen where they don't exist, as reported in Hoy. He says that the PRD government did create a very serious problem, but that the PLD administration has reduced it and the IMF has recognized this. He said that the country's debt has to be seen in the context of the GDP. This ratio has declined since 2004. He said that despite the global economic uncertainties, the DR has maintained economic stability and growth. Fernandez says that this generates confidence and investment that in turn spurs growth. He made his comments during the inauguration of the new Plaza Lama store in La Romana yesterday, adding that the opening of the new store was evidence of this stability.
Meanwhile, today's headline in Hoy newspaper refers precisely to growing foreign debt under the Fernandez administration. Economist Fernando Alvarez Bogaert says that the foreign debt "is the DR's most serious problem." He says that in 2010 it will engulf 41.5% of all tax revenues. He says that in two more years the level of indebtedness will have reached 46-47% of tax revenues. In addition, the electricity subsidy swallows up 10% of the tax revenues.
Alvarez Bogaert told Hoy that in 2009, from January-September the foreign debt absorbed 25.6% of the tax revenues. During the same period in 2010, the servicing of the debt absorbed 35.4% of these revenues.
He urged the government take measures to reduce its fiscal deficit. He said that the IMF had established that the deficit for this year would be RD$48 billion and no more than RD$34 billion for 2011. He called for improving the quality of government spending, in the short term.
Alvarez was also critical of the high cost of electricity in the country. A kilowatt/hour in the DR costs US$0.25 compared to Central America where it costs US$0.15 and there are no blackouts, he said.
He also called for improving availability of financing to productive sectors to stimulate exports.
More... (http://www.dr1.com/index.html#3)
Meanwhile, today's headline in Hoy newspaper refers precisely to growing foreign debt under the Fernandez administration. Economist Fernando Alvarez Bogaert says that the foreign debt "is the DR's most serious problem." He says that in 2010 it will engulf 41.5% of all tax revenues. He says that in two more years the level of indebtedness will have reached 46-47% of tax revenues. In addition, the electricity subsidy swallows up 10% of the tax revenues.
Alvarez Bogaert told Hoy that in 2009, from January-September the foreign debt absorbed 25.6% of the tax revenues. During the same period in 2010, the servicing of the debt absorbed 35.4% of these revenues.
He urged the government take measures to reduce its fiscal deficit. He said that the IMF had established that the deficit for this year would be RD$48 billion and no more than RD$34 billion for 2011. He called for improving the quality of government spending, in the short term.
Alvarez was also critical of the high cost of electricity in the country. A kilowatt/hour in the DR costs US$0.25 compared to Central America where it costs US$0.15 and there are no blackouts, he said.
He also called for improving availability of financing to productive sectors to stimulate exports.
More... (http://www.dr1.com/index.html#3)