RD$36 billion bond issue

[NewsWhore]

The Dominican government is putting the finishing touches to a RD$36 billion bond issue that will be used to cover the Central Bank quasi-fiscal deficit. According to Diario Libre, the bonds will carry a 15% APR. The bond issue will be formalized by legislation that is due to be submitted to the PLD-led Congress, where it is not expected to encounter much opposition. The Central Bank is carrying what is termed a "quasi-fiscal deficit" of around RD$26 billion, which is attributable to the interest payments due on its long-term certificates of deposit. According to figures released by Central Bank officials, the interest payments on the new bond issue will be equal to 0.5% of the GDP for 2007, or about RD$4.7 billion. The plan has the approval of the International Monetary Fund.

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