NewsWhore
12-05-2011, 12:50 PM
The Dominican government acknowledged to the International Monetary Fund that thanks to the agreement between the Pellerano family and the Central Bank, the country was able to cover part of the fiscal deficit in 2010. In the report, dated 3 December 2010, the Dominican government, through the Economic Team, recognizes that "The Government complied with the floor of the deficit of the central government by a margin of 0.3% of GDP, despite a shortfall in tax collections... which was compensated... by the income of an extraordinary operation in the Central Bank, related to the resolution of debts that date from the financial crisis of 2003," which is none other than the agreement with Bancredito.
For its part, the IMF admits in a chapter of its report entitled "Efforts at Recovery of Assets by the Central Bank of the Dominican Republic" that in "2005 the Central Bank re-estimated its financial statements in order to bring them closer to the International Financial Report Standards (IFRS). As a result, it re-evaluated the assets that it had acquired in the crisis in terms of the value that was expected to be recovered... For Bancredito in particular, the reduction of the value of the assets was a little higher (86%) and the original RD$17.8 billion were given a book value of RD$2.5 billion." With relation to the negotiation, the IMF establishes that the final agreement was for RD$10.3 billion in payment, which was received through numerous assets and they added in the IMF note that "in exchange, the former owners (of Bancredito) were relieved of the pending debts and their jail sentences were reduced." This last part, as is known, has not taken place for unexplained reasons.
The IMF concludes its report saying that "the transaction turned out to be a large net gain in the Central Bank's books... bringing a net earnings of RD$7.8 billion pesos, but 'in order not to create a distortion in the path of the fiscal adjustments', the program allowed for the recognition of only part of these earning (around US$40 million or 18%) each year."
More... (http://www.dr1.com/index.html#2)
For its part, the IMF admits in a chapter of its report entitled "Efforts at Recovery of Assets by the Central Bank of the Dominican Republic" that in "2005 the Central Bank re-estimated its financial statements in order to bring them closer to the International Financial Report Standards (IFRS). As a result, it re-evaluated the assets that it had acquired in the crisis in terms of the value that was expected to be recovered... For Bancredito in particular, the reduction of the value of the assets was a little higher (86%) and the original RD$17.8 billion were given a book value of RD$2.5 billion." With relation to the negotiation, the IMF establishes that the final agreement was for RD$10.3 billion in payment, which was received through numerous assets and they added in the IMF note that "in exchange, the former owners (of Bancredito) were relieved of the pending debts and their jail sentences were reduced." This last part, as is known, has not taken place for unexplained reasons.
The IMF concludes its report saying that "the transaction turned out to be a large net gain in the Central Bank's books... bringing a net earnings of RD$7.8 billion pesos, but 'in order not to create a distortion in the path of the fiscal adjustments', the program allowed for the recognition of only part of these earning (around US$40 million or 18%) each year."
More... (http://www.dr1.com/index.html#2)