NewsWhore
07-12-2011, 01:50 PM
The Central Bank reports that this Friday 15 July, the International Monetary Fund (IMF) board of directors will consider the Letter of Intent that corresponds to the fifth and sixth reviews of the Stand-by Arrangement with the Dominican Republic. Once the Directors of the IMF approve these two reviews, the country will be eligible to receive, during the second half of the year, the pending resources of disbursements that had been scheduled in the Letter of Intent and in the National Budget, some US$1.1 billion. The approval of the letter will also facilitate the approval of US$270 million in disbursements from the World Bank and the Inter-American Development Bank. The inspection of the Dominican Letter of Intent was set for a date after the directors looked at the case of Greece.
Readers will recall that after a visit by an IMF mission to the country and at the conclusion of the negotiations with the Dominican monetary authorities, the international financial agency set a condition for the ratification of the Agreement for Congress to approve the tax package, with which the administration seeks to obtain RD$12 billion pesos that will supposedly be invested in education.
Furthermore, the government needs the passing of the IMF reviews in order to issue new bonds abroad. The government seeks to place US$1 billion in sovereign bonds on the international markets.
Hoy newspaper criticized yesterday in an editorial that the government is borrowing to pay old debt. The editorial raised red flags writing: "What alarms and frustrates Dominican society the most regarding all that we owe is the perception that the State does not understand this reality and has not restructured itself for a more efficient its use of its revenues and borrowing, many times at short term high interest terms, for works that should be postponed and that are allotted in ways that do not guarantee the efficiency of the investment nor the real destiny of each dollar."
"Only the government believes it can continue taking on debt at this pace when taking into account the present and future reality," writes the editorialist, comparing government to a suicidal person blinded by his own obsessions.
Hoy criticized that the government seeks to justify its borrowing by translating this into a percentage of Gross Domestic Product, while shutting its eyes to the reality that for years now foreign and domestic debtors own up to half of government revenues, severely reducing its ability to deal with pressing national issues.
http://www.hoy.com.do/editorial/2011/7/10/383519/Endeudarse-para-pagar-deudas
More... (http://www.dr1.com/index.html#5)
Readers will recall that after a visit by an IMF mission to the country and at the conclusion of the negotiations with the Dominican monetary authorities, the international financial agency set a condition for the ratification of the Agreement for Congress to approve the tax package, with which the administration seeks to obtain RD$12 billion pesos that will supposedly be invested in education.
Furthermore, the government needs the passing of the IMF reviews in order to issue new bonds abroad. The government seeks to place US$1 billion in sovereign bonds on the international markets.
Hoy newspaper criticized yesterday in an editorial that the government is borrowing to pay old debt. The editorial raised red flags writing: "What alarms and frustrates Dominican society the most regarding all that we owe is the perception that the State does not understand this reality and has not restructured itself for a more efficient its use of its revenues and borrowing, many times at short term high interest terms, for works that should be postponed and that are allotted in ways that do not guarantee the efficiency of the investment nor the real destiny of each dollar."
"Only the government believes it can continue taking on debt at this pace when taking into account the present and future reality," writes the editorialist, comparing government to a suicidal person blinded by his own obsessions.
Hoy criticized that the government seeks to justify its borrowing by translating this into a percentage of Gross Domestic Product, while shutting its eyes to the reality that for years now foreign and domestic debtors own up to half of government revenues, severely reducing its ability to deal with pressing national issues.
http://www.hoy.com.do/editorial/2011/7/10/383519/Endeudarse-para-pagar-deudas
More... (http://www.dr1.com/index.html#5)