NewsWhore
08-04-2011, 12:40 PM
In an interview with the Corripio Communications Group, Hacienda Minister Daniel Toribio assured that the Dominican Republic's debt level is reasonable, at 37% of the GDP, as reported in El Dia. He said that IMF experts have advised that debt should not go beyond 40%. He added that in 2008 the fiscal deficit was 3.5% of GDP. Today it is 2.5%, in 2011 it is expected to end at 1.6% and in 2012 at 0.6%. He said that debt servicing only takes up 10% of government revenues, or about RD$30 billion. He defended the borrowing taken on by the Fernandez administration.
Of the total debt, the Dominican Republic owes Venezuela US$2.137 billion as of June 2011, El Dia reports today. The debt has piled up as the Fernandez administration has taken advantage of the PetroCaribe program credit on fuel purchases extended to Caribbean countries by the Chavez government. Of the total, the Dominican government needs to pay US$59 million this year.
Hacienda Minister Daniel Toribio wants more of the credits to be used for investments, and not to compensate the government for revenues not collected on electricity services provided. He said that of the US$1 billion that will be transferred to the electricity sector in 2011, US$700 million is applied to the subsidy. The subsidy primarily covers the poor consumers who do not pay for the service and the government entities consumption. He said of the total, US$1300 million would be allocated to investment projects, while US$200 million will go to pay debt.
Edgar Victoria, director of the Ministry of Hacienda public credit department, said that the electricity issues were of much interest to investors in Dominican sovereign bonds. He said that during the tour to place the bonds, they traveled with an energy expert who explained what the government was doing in the sector. He highlighted increased efficiency and improved transmission networks.
While the total subsidy is up considerably, Victoria argued that in relation to the GDP it declined from 3% in 2007 to 2.7% in 2010 and 1.3% in 2011.
During the interview, Toribio lobbied for a reduction in fiscal incentives granted to businesses.
More... (http://www.dr1.com/index.html#2)
Of the total debt, the Dominican Republic owes Venezuela US$2.137 billion as of June 2011, El Dia reports today. The debt has piled up as the Fernandez administration has taken advantage of the PetroCaribe program credit on fuel purchases extended to Caribbean countries by the Chavez government. Of the total, the Dominican government needs to pay US$59 million this year.
Hacienda Minister Daniel Toribio wants more of the credits to be used for investments, and not to compensate the government for revenues not collected on electricity services provided. He said that of the US$1 billion that will be transferred to the electricity sector in 2011, US$700 million is applied to the subsidy. The subsidy primarily covers the poor consumers who do not pay for the service and the government entities consumption. He said of the total, US$1300 million would be allocated to investment projects, while US$200 million will go to pay debt.
Edgar Victoria, director of the Ministry of Hacienda public credit department, said that the electricity issues were of much interest to investors in Dominican sovereign bonds. He said that during the tour to place the bonds, they traveled with an energy expert who explained what the government was doing in the sector. He highlighted increased efficiency and improved transmission networks.
While the total subsidy is up considerably, Victoria argued that in relation to the GDP it declined from 3% in 2007 to 2.7% in 2010 and 1.3% in 2011.
During the interview, Toribio lobbied for a reduction in fiscal incentives granted to businesses.
More... (http://www.dr1.com/index.html#2)