Temístocles Montás, Héctor Valdez Albizu, Dominique Strauss-Khan, Vicente Bengoa
WASHINGTON. -The Dominican Republic will get a US$1.7 billion loan, the International Monetary Fund announced Tuesday, a signing a staff-level agreement, news source wallstreetjournal.com reports
It said the IMF's executive board must still approve the 28-month stand-by arrangement. "We applaud the authorities for their strong program of policies, which demonstrates their commitment to fortify the institutional framework and the economy of the Dominican Republic," IMF Managing Director Dominique Strauss-Kahn said in a statement.
“The Dominican Republic sent the fund a letter of intent committing to a primary budget deficit of 0.8% of gross domestic product in 2009, with plans to reach a balanced budget in 2010 and a 2% of GDP surplus in 2012,” the Web site said.
It adds that to reach that goal, the Dominican Government plans a range of structural reforms, including improving tax administration and sharply cutting tax exemptions.
Present during Strauss-Khan's announcement were Economy minister Temístocles Montás, Central banker Héctor Valdez Albizu, and Hacienda minister Vicente Bengoa.
Recently various tax exemption scandals have surfaced, including those of the lawmakers to buy luxury cars every two years, which they in turn sell to individuals who actually import the vehicles, as well as on fuels to the power companies, which some resell creating a distortion in the market.
From: United States
Oh please. The Dominican government is so transparently corrupt, how could you just line their thieving pockets?
From: United States
How about doing something about the rampant nepotism?
Written by: dominica, 6 Oct 2009 3:04 PM
From: United States
The size of this loan is a bit concerning. There is already too much debt and spending. Some tighter controls need to be launched.
Written by: josean, 6 Oct 2009 3:12 PM
From: United States
The "Four Horsemen of The Dominican Economic Apocalypse!"
DR now means Debt Republic!
Written by: Botemon, 6 Oct 2009 3:19 PM
From: Dominican Republic, La Isabella
Free cerveza for all!!!!!
Unbelievable!
Written by: juanb, 6 Oct 2009 3:28 PM
From: Dominican Republic
If this money comes with the stipulation that the government reduce its wasteful spending AND IF the government lives up to its commitment, then this is a good thing. More likely, however, is that promises will be made and broken and we will wind up in worse shape than before. A leopard does not change its spots.
Written by: dagtan, 6 Oct 2009 4:33 PM
From: United States
Josean you are totally right. On the other hand, juanb needs alot of help. I do not know when our politicians are going to learn the lessons form other countries. Have they ever read about Jamaica and how it rejected any loans from IMF due to the fact that the IMF requires countries who they lend money to to do things as they wish. You see the problem here is not the loan itself, but the conditions that are set forth by the IMF in order for the DR to get such loan. For the most part the IMF requires the receiving country to spend the loan on certain services and with certain companies. Non of these spending can be use to import technological, medical, and manufacturing know how to the country. Instead, they need to spend on infrastructure that are not needed (ala, the metro) and have companies (international) that recommended by the IMF to do the job. This is simply selling our youth development to the IMF and saying to the youth in the country, 'you do not count, so butt off'
Written by: dagtan, 6 Oct 2009 4:37 PM
From: United States
The difference between the DR and Jamaica is that Jamaican leaders realize theat they can no longer rely on tourism as their mean for survival on the economically diversified world. The requested money to expand their schools and import knowledge into the island to explore their natural resources. The wanted to create job training that will then lead to job creation on the island and finally, they wanted all companies with contracts to import knowledge and train Jamaicans, than just simply coming in completing the work and leave. This is the way that china deals with companies, unless their import the knowledge and leve behind a trainned workforce, they are not getting the contract.
From: United States, Bay Area, CA - (Dei sitio)
There is absolutely no doubt that debt is the most active indicator of Dominican economy.
DR politicians have an unquenchable appetite for $$, even worse are bottomless pits.
From: Dominican Republic, Boycott Dominican Tourism
How much does DR owe anyway?
From: Dominican Republic, vieja Santo Domingo
juanb yes I hope that the leopard is one of a different colour this time ,,you will recall that previous problems between the IMF and the DR were with a different administration ..I hope the IMF can be a strong and effective policeman especially in regard to reforms in the taxation and electricity industry. I imagine they will be keeping a close eye on us and all the money will not be forthcoming at the one time ,,Actually it is only the stand by facility that was announce some time earlier and which the IMF thought may not be necessary . At this stage we do not know the terms of the facility so is hard to comment but I hope if and when it is drawn down , the interest rates are the low ones promised to poor countries.
From: United States
The Dominican Today's experts are having a ball.
All they need are loaves of bread and cans sardines
Written by: josean, 6 Oct 2009 5:50 PM
From: United States
Ricky Pollyanna favorite words
I hope, I magine, I hope, I magine: just like LIE-onel Fernandez ,I hope the METRO will work I imagine 200,000 people will ride it everyday!
Improvisation at is best!
From: Dominican Republic
Que forma tan rara de saludar.
From: United States
How much do they owe. They can not count that high.
After the Bank fraud collapses they kept referring to the Bank quasi deficit which was a Billion USD or more. Now they do not even talk about it.
What a bunch of scum.
There are people out there that deserve money and help, these thieves do not. They are incapable of letting greed get in the way.
Written by: dagtan, 6 Oct 2009 8:23 PM
From: United States
Ricardolito, you very misinformed my friend. Do you understand that the IMF is the number one enemy here, who is simply exploiting these third nations full of uneducated politicians and people. The IMF does not mandate educational investment or building of schools per capital, it does not mandate expansion of health care, it does not mandate the establishment of social services which are a natural right and not a political one. Yes, did you know Ricardolito that it is your natural right as a human being to have a government that provides a good education and health care system to its people. The IMF only mandates capital improvements and infrastructure development that will accommodate the companies here in the U.S. and E.U. The electrical plant will be built by most likely a canadian company and they will leave no trained personnel behind for maintenance, so they will have the maintenance contract. The electrical comp does not want to pay for maintenance, so it will break,
Written by: dagtan, 6 Oct 2009 8:24 PM
From: United States
just like the ones that we have now. Wake up for God sake.
Written by: THINK, 6 Oct 2009 9:12 PM
From: United States, SDQ -- Mia --NY
One suggestion to IMF:
Review the assets of those who are Senators, Congressman, high post position public figures..........study in detail, ......... then, let's talk about transparency.....
Written by: BASTA, 6 Oct 2009 9:19 PM
From: Dominican Republic, =Ghetto/Legalize Drugs
I hope, I magine, I hope, I magine: just like LIE-onel Fernandez ,I hope the METRO will work I imagine 200,000 people will ride it everyday! I your crack dreams
Written by: juanb, 6 Oct 2009 10:17 PM
From: Dominican Republic
Dagtan:
You sir are delusional. A government such as ours desperately needs and more importantly MUST HAVE someone looking over its shoulder to check the wasteful spending that is a part of daily life here. If it weren't for the IMF this would not only be a failed state, it would have been a bankrupt state, as well.
Written by: dagtan, 6 Oct 2009 10:26 PM
From: United States
Juanb, you might want to do yourself a favor and read about the history behind the IMF and its purpose and who owns it and to whom they lend more and under which terms. Also, read the IMF charter and then make a direct counter argument to mine and you will see that it wont hold water, mr. Juanb. moreover, my point here is not he oversight, but the terms of the loans and how the country will spend such funds, which are dictated on the terms of the loan. Think about this for second, if you go for loan and there is only one bank to lend you money, that bank has the ability to charge unrealistic high interest, virtually making sure that you never finish paying such loan. Plus, such loan comes with a set of expectations as to how you are going to invest the loan and which vendors or companies you are going to use for those services. Is this fair? This is what I am talking about and not oversight, read a bit more careful. Read the Jamaican ongoing fight with IMF and learn a little
Written by: molloy, 7 Oct 2009 7:46 AM
From: United States
Be careful, you might be sold off into slavery.
Whenever the IMF lands in a poor country, bankers and corporations end up owning the country, its people and its resources by the time they are done.
IMF facilitates massive loans to countries. The money is split between the dictator and US corporations who do infrastructure projects to extract natural resources. Country can then not afford payments and goes bankrupt. Corporations then get resources for nearly free using infrastructure they were paid to build. Dictator has money invested outside country and then moves money back into country as local currency is devalued and becomes fabulously wealthy.
As they say, rinse and repeat.
And yes, the IMF IS managed by the same people in US/UK/EU banking industry. Rothchild, Rockefeller, Morgan, etc.
From: United States
Good, the apocalypse zombie is running out of words.
From: Dominican Republic
It is clear that the ills that many of you have mentioned regarding corruption and nepotism are based in fact. And anyone with a basic education understands the shortcomings of the IMF. Still, this country will definitely benefit from infrastructure spending. Everyone in Santo Domingo can understand the increased productivity that would be available with more hours were spent behind a desk instead of behind the wheel.
The sentiment here is that foreign companies do not use a local workforce. That is not true. I look at many of these projects, and can see these local hires. Are some of the top positions held by non Dominicans? Of course. It's a matter of local resources, meaning trained talent. I have met many Dominicans with the same skillsets and training as foreign managers, and in many cases they get these local management jobs as well.
The DR is in a growth cycle. It is not clean, nor pretty. However, I recommend getting involved, staying educated and adding value.
Written by: dagtan, 7 Oct 2009 4:12 PM
From: United States
Thank you very much MOLLY, maybe juanb will get it now, maybe not. And for LeCometeStGermain, yes and no. The high tech jobs are always completed by foreign companies and workers, manual or low managerial jobs are often given to the locals, becuase locals do the manual and lower jobs (i.e. mixing cement, clean up, disposal and others). The DR has not yet realize that the future is in produtivity and not services. There will come a time when artificial beaches will be built in the middle of a city in order to capture as much spending as as possible. One exmple of this is the U.A.E., they say, why travel ti Ibiza for the beach or the sun, we'll built it here for you and they have done it. The DR spended less than Cuba and only more than Haiti in the caribbean when it came to education. Hey BTW, have you been to the StGermain, it is a great restaurant and great food in NYC.
Written by: gabolora, 9 Oct 2009 2:08 PM
From: Dominican Republic
oh my god! more debts, their pockets get bigger proportionally to our taxes. How can they go on with this!?!? They're putting us deeper into the hole!! Tougher protests must begin.
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How about doing something about the rampant nepotism?
DR now means Debt Republic!
Unbelievable!
DR politicians have an unquenchable appetite for $$, even worse are bottomless pits.
All they need are loaves of bread and cans sardines
I hope, I magine, I hope, I magine: just like LIE-onel Fernandez ,I hope the METRO will work I imagine 200,000 people will ride it everyday!
Improvisation at is best!
How much do they owe. They can not count that high.
After the Bank fraud collapses they kept referring to the Bank quasi deficit which was a Billion USD or more. Now they do not even talk about it.
What a bunch of scum.
There are people out there that deserve money and help, these thieves do not. They are incapable of letting greed get in the way.
Review the assets of those who are Senators, Congressman, high post position public figures..........study in detail, ......... then, let's talk about transparency.....
You sir are delusional. A government such as ours desperately needs and more importantly MUST HAVE someone looking over its shoulder to check the wasteful spending that is a part of daily life here. If it weren't for the IMF this would not only be a failed state, it would have been a bankrupt state, as well.
Whenever the IMF lands in a poor country, bankers and corporations end up owning the country, its people and its resources by the time they are done.
IMF facilitates massive loans to countries. The money is split between the dictator and US corporations who do infrastructure projects to extract natural resources. Country can then not afford payments and goes bankrupt. Corporations then get resources for nearly free using infrastructure they were paid to build. Dictator has money invested outside country and then moves money back into country as local currency is devalued and becomes fabulously wealthy.
As they say, rinse and repeat.
And yes, the IMF IS managed by the same people in US/UK/EU banking industry. Rothchild, Rockefeller, Morgan, etc.
The sentiment here is that foreign companies do not use a local workforce. That is not true. I look at many of these projects, and can see these local hires. Are some of the top positions held by non Dominicans? Of course. It's a matter of local resources, meaning trained talent. I have met many Dominicans with the same skillsets and training as foreign managers, and in many cases they get these local management jobs as well.
The DR is in a growth cycle. It is not clean, nor pretty. However, I recommend getting involved, staying educated and adding value.