Santo Domingo. - The Government’s US$1.0 billion in proposed bonds are included in the RD$115.0 billion in financing in this year’s budget, affirmed the Treasury Minister yesterday.

Vicente Bengoa said the funds will be used exclusively in infrastructure and not in the political campaign, as agreed with the International Monetary Fund (IMF).

He said the US$600 million noted in the budget is explained in the RD$23.0 billion in proposed bonds and that the US$400 million to complete the US$1.0 billion pending in Congress would come from the RD$32.0 billion from internal credit with private banks, as long as the interest rate is lower than in the local market. “In that case the internal loans from sovereign bonds would be changed and save hundreds of millions of pesos.”

He said the Government is never going to exceed the RD$115.0 billion in the Budget because it would violate the agreement with the IMF.

In a press conference in his office Bengoa denied the bonds are another debt and insisted that their purpose is infrastructure.

He said it’s the best time to write them for the capitals market since the 6.68%, interest rate is less than half than in January 2009, contrary to what some sectors state.

Critics

Opposition and business leaders have questioned the country’s debt level and express concern the funds would end up not in public works or other priorities such as paying the power companies, but in areas such as the ruling party’s coffers and in political campaigns.