Debt increase

[NewsWhore]

Economist Arturo Martinez Moya, writing in Hoy newspaper, says that the Dominican Republic internal and external debt have both increased during Leonel Fernandez's Presidency. Martinez says that the debt now stands at US$4.25 billion and that this amount is US$350 million higher than the debt accumulated during the Hipolito Mejia presidency, which he claims was US$3.9 billion in four years. Martinez points out that grace periods on debts during Mejia's government have expired, leaving the current government in search of an extra RD$65 billion in funds. The economist is also one of many who are calling for the government to tighten its belt instead of imposing another fiscal reform, and says that the government is allowed to postpone the payment of their current debts. Martinez did however point out a blatant reality of the government system. He says that if the government wants to collect RD$6 billion they would have to dismiss 30,000 government employees who earn RD$12,000 per month each, and went as far as to say that removing or reducing the subsidies on electricity wouldn't do much since the companies would then pass the cost on to the consumer.

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