NewsWhore
05-23-2012, 03:40 PM
According to UK newspaper the Financial Times, the markets are relieved that Danilo Medina won the Dominican elections. The newspaper reported that there wasn't that much of a difference, ideologically at least, between the two leading candidates but Medina was considered the "stability candidate" more likely to follow in the footsteps of his well-liked predecessor, Leonel Fernandez.
The report expects that most importantly, Medina was the candidate who was most likely to continue with the reform agenda initiated by Fernandez, including probably a renewal of a Stand-by agreement with the IMF.
Mejia, meanwhile, was considered something of a loose cannon, already causing concerns after strongly criticizing some of the reforms recommended by the IMF, said the report.
According to Heather Berkman at Eurasia Group, as well as the IMF agreement, Medina's agenda includes "a potential tax reform, and the need to tackle a troubled public electricity distribution company that continues to drain resources from the central government, which will remain a significant burden.
However, according to analysts at Barclay's Capital, this doesn't mean it's time to pile into the Dominican Republic's debt, but with any luck the country will at least continue on its positive path, already the envy of many other economies in the region for its strong economic growth in recent years.
http://blogs.ft.com/beyond-brics/2012/05/22/dominican-rep-stability-candidate-prevails/#axzz1vdjPuR18
More... (http://www.dr1.com/index.html#4)
The report expects that most importantly, Medina was the candidate who was most likely to continue with the reform agenda initiated by Fernandez, including probably a renewal of a Stand-by agreement with the IMF.
Mejia, meanwhile, was considered something of a loose cannon, already causing concerns after strongly criticizing some of the reforms recommended by the IMF, said the report.
According to Heather Berkman at Eurasia Group, as well as the IMF agreement, Medina's agenda includes "a potential tax reform, and the need to tackle a troubled public electricity distribution company that continues to drain resources from the central government, which will remain a significant burden.
However, according to analysts at Barclay's Capital, this doesn't mean it's time to pile into the Dominican Republic's debt, but with any luck the country will at least continue on its positive path, already the envy of many other economies in the region for its strong economic growth in recent years.
http://blogs.ft.com/beyond-brics/2012/05/22/dominican-rep-stability-candidate-prevails/#axzz1vdjPuR18
More... (http://www.dr1.com/index.html#4)