NewsWhore
07-05-2011, 02:10 PM
Economists Apolinar Veloz and Bernardo Fuentes do not share the opinion expressed by Banco de Reservas administrator and former Hacienda Minister Vicente Bengoa who said that "the IMF has the government was on its knees before the IMF."
The economists countered by saying that the rampant corruption by the administration is what has brought the country to its knees, as reported in Hoy.
Hoy newspaper also asked the two economists for their reactions to Bengoa's statements that the PetroCaribe Agreement had helped the country with nothing required in return while the IMF had the country on its knees.
According to Veloz, corruption and business deals made by public officials are what have made the country kneel down. As well as complaining about corruption, the economist also criticized the way the Dominican government is spending funds from loans from international financial institutions, which the Dominican people will have to pay back with interest.
He questioned the fact that the Department of Taxes has reported increased revenues from tax collections and then the administration goes out and seeks more credit and financing to sustain growth.
Both agreed that the IMF has been very lenient with the Dominican Republic since the country has failed to fulfill its commitments, and despite receiving sharp criticisms in the last letter of review for failing to reach the targets set for the end of 2010 and the first quarter of 2011, the credit agency "is still there."
Economy & Development Minister Temistocles Montas told Listin Diario that it was the Fernandez administration that requested the agreement with the International Monetary Fund. "The IMF is here not because it wants to be. It is here because the Dominican Republic economic authorities invited it. That is, normally the IMF does not go where it is not invited, and if they are here, this should make us think that the economic authorities have requested their presence because they understand it is healthy for the Dominican economy at this time," he said.
Businessman Ignacio Mendez, of the Federation of Industrialists (FAI), agreed that the IMF has the government on its knees. In an interview with the Listin Diario, he said this is not the fault of the IMF, but rather the governments of the Dominican Republic are to blame. "They have not done what they have to do when they had to do it. We always have had to wait for someone from abroad to come to tell us what to do," he said. He said that the IMF is only seeking to guarantee the recovery of their resources, and that was known beforehand. Mendez says it is time for major cuts in government spending.
Mendez commented on the fact that a Ministry has 24 deputy ministers, the large number of SUVs benefitting government officials that are in circulation, government spending of RD$1 billion to build a jail, or RD$1 billion to build a parking lot. He called for the government to send out signs that it will adjust its superfluous spending.
More... (http://www.dr1.com/index.html#1)
The economists countered by saying that the rampant corruption by the administration is what has brought the country to its knees, as reported in Hoy.
Hoy newspaper also asked the two economists for their reactions to Bengoa's statements that the PetroCaribe Agreement had helped the country with nothing required in return while the IMF had the country on its knees.
According to Veloz, corruption and business deals made by public officials are what have made the country kneel down. As well as complaining about corruption, the economist also criticized the way the Dominican government is spending funds from loans from international financial institutions, which the Dominican people will have to pay back with interest.
He questioned the fact that the Department of Taxes has reported increased revenues from tax collections and then the administration goes out and seeks more credit and financing to sustain growth.
Both agreed that the IMF has been very lenient with the Dominican Republic since the country has failed to fulfill its commitments, and despite receiving sharp criticisms in the last letter of review for failing to reach the targets set for the end of 2010 and the first quarter of 2011, the credit agency "is still there."
Economy & Development Minister Temistocles Montas told Listin Diario that it was the Fernandez administration that requested the agreement with the International Monetary Fund. "The IMF is here not because it wants to be. It is here because the Dominican Republic economic authorities invited it. That is, normally the IMF does not go where it is not invited, and if they are here, this should make us think that the economic authorities have requested their presence because they understand it is healthy for the Dominican economy at this time," he said.
Businessman Ignacio Mendez, of the Federation of Industrialists (FAI), agreed that the IMF has the government on its knees. In an interview with the Listin Diario, he said this is not the fault of the IMF, but rather the governments of the Dominican Republic are to blame. "They have not done what they have to do when they had to do it. We always have had to wait for someone from abroad to come to tell us what to do," he said. He said that the IMF is only seeking to guarantee the recovery of their resources, and that was known beforehand. Mendez says it is time for major cuts in government spending.
Mendez commented on the fact that a Ministry has 24 deputy ministers, the large number of SUVs benefitting government officials that are in circulation, government spending of RD$1 billion to build a jail, or RD$1 billion to build a parking lot. He called for the government to send out signs that it will adjust its superfluous spending.
More... (http://www.dr1.com/index.html#1)