NewsWhore
02-07-2007, 05:40 PM
Last year, the Dominican government spent RD$5.56 billion pesos on propane (LPG) subsidies, but this year the total is said to be just RD$2.4 billion. The lower amount allocated to subsidize the LPG used in household cooking is due to the obligation for such a reduction contained in the Letter of Intent that will be reviewed by the International Monetary Fund (IMF) board of directors on 14 February. According to El Caribe, during the presentation of the fifth and sixth revision of the Stand-by accord with the IMF to the government's economic cabinet, the document foresees a 6% growth in 2007 and an inflation rate of between 4% and 6%. The entire document from the Central Bank was published in today's papers. Vicente Bengoa, now the head of the Treasury Ministry, revealed the lowering of the funds for the subsidy. He pointed out that in case the funds allocated to the subsidy run out, the government would meet with IMF officials to discuss alternative solutions. For a long time, the IMF has pushed for a removal of all of the LPG and electricity subsidies, since this would save US$400 million each year. If the IMF revisions are accepted, the Dominican government will have access to US$57 million in IMF funds.
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More... (http://www.dr1.com/index.html#4)