Money talk

[NewsWhore]

After a meeting with the IMF's technical team to discuss the Central Bank's quasi-fiscal deficit, Technical Secretary to the Presidency Temistocles Montas announced that the government has to transfer RD$5.6 billion to the Central Bank next year in order to pay the interest on the internal bonds that will be issued for the CB's recapitalization. Hoy newspaper reports that this will be part of a 10-year plan to recapitalize the Central Bank. Montas said that as part of the fiscal reform, money is needed in order to deal with the bank's deficit. IMF team member Peter Stella was quoted as saying that the government has an opportunity to help in the recapitalization of the Central Bank in a way that would support development in the internal market, and that it is important that the government create a deep market with liquid assets that would help the Central Bank lower the rates on financial certificates. Hoy reports that the Bank's deficit at the end of this year will be between RD$22 and RD$23 billion.

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