The Government awash with money for the holidays.
Loans skyrocket foreign debt from 15.8% to 18.5% vof GDP
SANTO DOMINGO.- Treasury minister Vicente Bengoa signed a US$500 million loan agreement with the Inter-American Development Bank (IDB) on Thursday, whose funds seek to shore up the country’s budgetary allocations.
The official said the funds will be disbursed in two allotments of US$300 million this year and the remaining US$200 million next year.
He stressed that aside form the US$300 million as a first payment from the IDB loan, the country will also receive another US$300 million this year from the International Monetary Fund (IMF) and US$300 million more from the World Bank.
“It’s not additional money that we’re going to receive. They are funds whose entry is contemplated in this year’s Budget. This will allow compliance with our spending estimate for this year and will be used for what the Budget Law states,” Bengoa said.
Foreign debt
Although the Treasury Minister denied that the loans would skyrocket the country’s foreign debt, he admitted it would rise from 15.8% to 18.5% of the Gross Domestic Product.
Written by: juanb, 5 Nov 2009 4:10 PM
From: Dominican Republic
Am I the only one who realizes that this money has to be paid back?
Does anyone else realize that the foreign debt is 18.5% and the domestic debt is almost DOUBLE that?
We are quickly reaching the point where more than 50% of the GDP goes to service the debt load. There is already no money for education, no money for infrastructure, no money to pay deserving employees such as police and teachers what they deserve. How long until the country is forced to declare bankruptcy?
Thank goodness that there is still enough money for our politicians to steal.
From: Dominican Republic
Has anyone been keeping track of all the loans the DR has received not to mention donation during tropical storms and heavy rain disasters. Because i have lost track.
Which reminds me of a true Story, there is supermarket here in the North Coast that was once selling whole chickens at one time, and it had a Label that said donated by Argentina. lol
Written by: xwill7, 5 Nov 2009 4:19 PM
From: United States, El cuarto bate
they will pay nothing back
From: Dominican Republic
Written by: xwill7, 5 Nov 2009 4:19 PM
From: United States, Chicago
they will pay nothing back
____________________________________________
Yeah but us the tax paying, citizens are everyday paying back.
From: United States
With all that money, even when we need to repay,
can we at least get electricity 16 hours a day?
can they pay the agency who handles Desayuno Escolar?
can they equip hospitals more efficiently?
can they get transportation back to normal?
can they raise minimun wage?
can they start reconstructing our barrios with decent housing?
can they give Tarjetas Solidarias to the real needed "the poor" and not the tigueres who use it to get doped up?
can they...can they...can they....?
Written by: xwill7, 5 Nov 2009 4:28 PM
From: United States, El cuarto bate
this money is like putting a tiny band aid on a broken leg
From: United States
Lionel dice, "No hay un peso!"
That's gonna buy a lotta cocaine from the smugglers....anybody got a total amount the DR has mooched off the rest of the world this year?
Written by: yowzerDR, 5 Nov 2009 5:32 PM
From: Dominican Republic
If officials stopped lining their pockets, we won't need this extra loan....
From: Dominican Republic, Puerto Plata
Field day for the yipeta dealers.
Are the new models out yet?
Written by: xwill7, 5 Nov 2009 6:09 PM
From: United States, El cuarto bate
walter,
nope same models in DR...
montero
x5
fx35
prado
Everyone copies each other in DR...lol
But I hope you are wrong and the $$$ actually helps DR
Written by: juanb, 5 Nov 2009 6:40 PM
From: Dominican Republic
Dondankar:
NO they can't do any of those things and there are a lot more things that won't happen as well.. These loans are not "extra" money. These loans only go part of the way towards replacing the money that is wasted, lost, or stolen by our government officials every day.
I see where the new director of the CDEEE has cut the payroll, by more than 40,000,000 RD per month. Thats more than a million dollars that he found being wasted on unnecessary payroll, in just his first few months at the job. Multiply this by the number of years that bum segura was in office and then multiply it by the number of governmental agencies that are in the same condition. That's where our money has gone and that is where it will continue to go.
From: Dominican Republic, calle A.Portes
This story has been repeated here several times and with the same responses from those who believe that the government officials steal or misappropriate more than 500 million each year and those who are concerned that our borrowings will be just under 50% of GDP.
I do not know what the cost to the country of corruption is but whatever it is it needs to be eliminated ..but I do know that we need to fix the temporary reduction in income and rather than put up taxes, and the easiest would be the direct tax on consumption , it is better to take the loans from the IMF who may at the same time help to reign in the mal administration
Written by: BASTA, 5 Nov 2009 7:10 PM
From: Dominican Republic, =Ghetto/Legalize Drugs/Free abortions for all
can they...can they...can they....? NoNoNo
those who believe that the government officials steal or misappropriate= a fact is a fact 85% of dominicans are crooks and 84.8% are PLD
Written by: juanb, 5 Nov 2009 8:38 PM
From: Dominican Republic
Headline from today's Listin:
Leonel inaugura centro penitenciario y carretera por RD$460 millones en Moca.
Let's hope he gets residency there.
From: United States, Fresh Water Paradise-NY Finger Lakes
Basta,
You wrote; ""those who believe that the government officials steal or misappropriate= a fact is a fact 85% of dominicans are crooks and 84.8% are PLD""
You've got to be an optimist!
From: United States, I believe that Chillaxin was right!!! a commie but right
WOW!!! How is the next president going to handle this I mean... Serously, we owe Chavez a ton of money.... And Leonel keeps taking out loans.....
From: United States, Fresh Water Paradise-NY Finger Lakes
Yes, Virginia, there is no Santa Claus!
If you spend like drunken sailors, borrow irresponsibly, your debs shall accumulate beyond your ability to pay and soon you'll be insolvent. Sadly, this is DR's fate, and it might be too late to do anything about it.
A morally bankrupt society can do little to save itself, and DR exhibits ample evidence of having reached that point. You have a corrupt and dysfunctional government, a corrupt judicial system, and a very large and growing criminal sector of civilian population. In short, we are either a failed state, or rapidly approaching that status. Things really don't bode well for the future.
We have no clear choice in elected government, and often times the choice comes down to the lesser of nearly equal evils. And so, irrespective of who is in power, corruption would still prevail. Fundamentally, we require a clear paradigm shift, one that may even involve blood to bring about necessary justice. I am all for it!
From: Dominican Republic, calle A.Portes
I do not agree with all the concern about this borrowing which is about middle of the norm for countries ..there are the oil rich countries who need no debt even in this economic climate and there are countries who have felt the downturn worse and who need money to stimulate their economies and to temporarily help with the reduced revenues coming from reduced trade. We are about in the middle .If we dot borrow we can do nothing about roads ,electricity and there will be mass unemployment..It is nice if you are a fully developed country already but we are only recently emerging from third world status. Future generations will have to repay these loans but hopefully we will have much to show for them, but like everyone I share the concerns that some loans will be improperly utilized ,,but that is another question that needs a different response.
Written by: marko, 7 Nov 2009 9:39 AM
From: Austria
be honest to have such a dept to gdp ratio as your country, would be like celebrate christmas and easter holiday at the same day for most of the worlds finance minister.
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Does anyone else realize that the foreign debt is 18.5% and the domestic debt is almost DOUBLE that?
We are quickly reaching the point where more than 50% of the GDP goes to service the debt load. There is already no money for education, no money for infrastructure, no money to pay deserving employees such as police and teachers what they deserve. How long until the country is forced to declare bankruptcy?
Thank goodness that there is still enough money for our politicians to steal.
Which reminds me of a true Story, there is supermarket here in the North Coast that was once selling whole chickens at one time, and it had a Label that said donated by Argentina. lol
From: United States, Chicago
they will pay nothing back
____________________________________________
Yeah but us the tax paying, citizens are everyday paying back.
can we at least get electricity 16 hours a day?
can they pay the agency who handles Desayuno Escolar?
can they equip hospitals more efficiently?
can they get transportation back to normal?
can they raise minimun wage?
can they start reconstructing our barrios with decent housing?
can they give Tarjetas Solidarias to the real needed "the poor" and not the tigueres who use it to get doped up?
can they...can they...can they....?
That's gonna buy a lotta cocaine from the smugglers....anybody got a total amount the DR has mooched off the rest of the world this year?
Are the new models out yet?
nope same models in DR...
montero
x5
fx35
prado
Everyone copies each other in DR...lol
But I hope you are wrong and the $$$ actually helps DR
NO they can't do any of those things and there are a lot more things that won't happen as well.. These loans are not "extra" money. These loans only go part of the way towards replacing the money that is wasted, lost, or stolen by our government officials every day.
I see where the new director of the CDEEE has cut the payroll, by more than 40,000,000 RD per month. Thats more than a million dollars that he found being wasted on unnecessary payroll, in just his first few months at the job. Multiply this by the number of years that bum segura was in office and then multiply it by the number of governmental agencies that are in the same condition. That's where our money has gone and that is where it will continue to go.
I do not know what the cost to the country of corruption is but whatever it is it needs to be eliminated ..but I do know that we need to fix the temporary reduction in income and rather than put up taxes, and the easiest would be the direct tax on consumption , it is better to take the loans from the IMF who may at the same time help to reign in the mal administration
those who believe that the government officials steal or misappropriate= a fact is a fact 85% of dominicans are crooks and 84.8% are PLD
Leonel inaugura centro penitenciario y carretera por RD$460 millones en Moca.
Let's hope he gets residency there.
You wrote; ""those who believe that the government officials steal or misappropriate= a fact is a fact 85% of dominicans are crooks and 84.8% are PLD""
You've got to be an optimist!
If you spend like drunken sailors, borrow irresponsibly, your debs shall accumulate beyond your ability to pay and soon you'll be insolvent. Sadly, this is DR's fate, and it might be too late to do anything about it.
A morally bankrupt society can do little to save itself, and DR exhibits ample evidence of having reached that point. You have a corrupt and dysfunctional government, a corrupt judicial system, and a very large and growing criminal sector of civilian population. In short, we are either a failed state, or rapidly approaching that status. Things really don't bode well for the future.
We have no clear choice in elected government, and often times the choice comes down to the lesser of nearly equal evils. And so, irrespective of who is in power, corruption would still prevail. Fundamentally, we require a clear paradigm shift, one that may even involve blood to bring about necessary justice. I am all for it!