T. Montas in the National Palace yesterday.
SANTO DOMINGO.- 2010 is still far away from ending but the Dominican Government already has plans to finance next year’s Budget, with Economy minister Temístocles Montas revealing Thursday that it will have a deficit, forcing a search of nearly US$800 million, of which US$500 million will be obtained with bonds.
“So whenever the Dominican Government maintains its commitment with stability, the same must also be authenticated by the International Monetary Fund," the official said, noting that the Budget being drafted for 2011 will have a deficit of around 1.6% of the Gross Domestic Product.
The Economy Minister affirmed that this year’s deficit is RD$47 billion. “So that you see that we are improving, the deficit for this year is 2.4% of the GDP; for next year it will be lower than 0.8% of the GDP."
The GDP was RD$342.6 billion in 2009, RD$87.9 billion in the first quarter and is projected to conclude with nearly RD$352 billion.
Montas declined to specify the amount of the 2011 Budget, alleging that it’s an attribution of the Treasury Ministry. “But I am advancing this to you, that in a context in which the Government, as part of the handling of a program with the International Monetary Fund, the authorities won’t have any difficulty to access international financing."
Dominican Republic’s bonds form part of last year’s US$1.7 billion agreement with the IMF, the official said, adding that with the sovereign bonds, the country will have financing from the Inter-American Development Bank and the World Bank.
He noted that the 2010 Budget is being shored up with US$750 million.
Written by: BASTA, 10 Sep 2010 8:04 AM
From: Dominican Republic, =Ghetto/Legalize Drugs
And Hippo did this! Screw fernandie loser crook,liar and everything that is Bad!
From: Dominican Republic, No Spin Zone
Magic 8 Ball please
From: United States
What massive deficient? The DR is doing great.
Do any of these clowns know what they are doing? Well except for stealing the money they are now in debt with.
Do NOT give them the money.
From: United States
But Leonel said that the DR is immune from the worldwide recession. All Dominican indicators show that the DR is not in a recession at least the numbers produced by the DR authorities show that the DR is increasing in every sector.
Ricardolito your PLD comments would be appreciated.
From: United States, FREEPORT, Long Island.... (Look, beyond the words)
the dominican republic is a victim of leonel and his homeboys, its all over the news...corruption, embezzlement, officials with poor skills, drug dealing by the military w/ ties to Agosto, borrowing monies to fix one thing and then use it for something else with no explaination, no effort to fix the education (8yrs now), poor service at hospitals, flooded streets/neighborhoods, abscent officials getting paid top PESO's for a service not provided, elctrical system still is a THIRD WORLD quality, Union bosses calling the shots and not the president, a president that makes less than a banker, but managed to create wealth in 8yrs, proposal of an artificial beach when three sides of DR is ocean. The list is endless,...... and you want to borrow SOME MORE Mr.fernandino.....GITOUTUVMAFACE(while applying babypowder on the hand to control slippage), B4 I SMACK YOU ONE FOR ASKING.....
From: Dominican Republic, Puerto Plata
Repent sinners! Your day is coming!
I´m targeting 2 kinds of sinners: all the thieves and incompetent public administrators that created this havoc, and all the idiots who could do something but won't.
Written by: danny00, 10 Sep 2010 9:56 AM
From: United States, syosset, key west, santo domingo AND NOW THE GLOBE TROTTER
what a joke... for weeks many on this site said uncle sam is dead and will be a 3rd world country....
think these folks ought to look and see whats going on in their own back yard.
one think i have to say about sam is that least they give something back to the people.... they dont steal most of it for themselfs.the poor can get help at least some kind of helping hand. best of all even most of the big boys that steal and get caught most go to jail.... u know the rest of the story..
have a nice day in la- la land.
Written by: juanb, 10 Sep 2010 10:45 AM
From: Dominican Republic
I hate to say I told you so,
buuuuuuuuut.................................
From: United States
And who in his right mind will buy this toilet paper. They are considered junk bonds.
I bet Leonel is just rying to get through the next election with a little fraud and collusion he might even get in.
Written by: Rainman, 10 Sep 2010 12:01 PM
From: United States
Once again the bad neighbor to the north to the rescue of a small country. This is crazy to get into more debt (of course it will never be paid back) without fixing internal problems starting with administrative corruption.
From: United States
We are stretching our bubble to it's fullest. When it does pop only a few will be left with wealth the most corrupt ones. The rest of the population will have a hard time getting food. We should prepare for this by growing as much food as we can. So we can trade it for other food types amongst ourselves. This is the only way most people will survive. I have a feeling this is going to get very bad.
Written by: Atabey, 10 Sep 2010 12:33 PM
From: United States, NYC
Modern economic development is founded on debt servicing. Unless you have a major export item, say oil and the price is high, you will need to service debt to meet your development needs. And even in that situation, debt and bonds are used to facilitate development schemes. Plain facts folks. Of course, it's always good to keep corruption and incompetence marginalized. But debt service development is and will be the liquid that feeds the DR engine. Now if you could get some nation to gift you grants, that's another story, but sadly this ain't happening to the degree that could ever match the needs of this nation. So debt is in and DR just falls into line with the rest of the world. Nothing new. What DR needs to do is develop its export output so that the servicing of the debt becomes less onerous as time goes by. If the stats are right, and I understand that many believe them not to be so, then the debt structure is not onerous. Again, if one can believe the stats.
Written by: ateo2010 
, 10 Sep 2010 3:02 PM
From: Dominican Republic, Owning Noobs
Just hypeee
Written by: Escott, 10 Sep 2010 4:39 PM
From: Dominican Republic, Cabrera and Sosua a 2 days a month for payday
Yeah I too am waiting for the screwball to plug the PLD and make things bright:)
Written by: airgordo, 10 Sep 2010 6:59 PM
From: Dominican Republic
and these people were teh same ones that were the biggest critics of Hipolito Mejia, these rats said the world would end when Hippo doubled the national debt from 3,500 US Millions to 7,000 i remember very well that they said it was crazy that from 1844 to 2000 our debt was twice as less...
DR debt is today Sept 10th, more than 21,000 US MILLIONS, i would like to see on what base they criticize mejia if THEY DID EVEN WORST
From: United States
This is outreageous, The head of the central bank has no idea what he is doing and he is being guided by a president that lacks any economic knowledge. He in turn in being advise by business leaders who have come to glory by having the right last name, Please put people in charge that know something about budgets and economics. 4th grade economics studentys cannot run a country. Business people and politicians that have achieved their succcess thru corruption cannot help. It is way past time for a change, Soon you will need 100 pesos to buy a dollar, but I know this is over the heads of our gevernment's leaders, SELL YOUR PESOS!
From: Botswana, La reconnaissance est une lachete'
Atabey
Very good post I believed the finance ministers of Iceland and Ireland felt the same way
Those were not consider third world countries, do you know what happen when you try to apply first world economic model to third world countries (Jamaica might be a good case study for you, Bolivia and the Bechtel situation may also show you what happened when it gets real bad)
Side note You can not borrow your way into prosperity, debt fuel development mix with a weak tax base and a little kleptocracy added is never a good brew.
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What massive deficient? The DR is doing great.
Do any of these clowns know what they are doing? Well except for stealing the money they are now in debt with.
Do NOT give them the money.
Ricardolito your PLD comments would be appreciated.
I´m targeting 2 kinds of sinners: all the thieves and incompetent public administrators that created this havoc, and all the idiots who could do something but won't.
think these folks ought to look and see whats going on in their own back yard.
one think i have to say about sam is that least they give something back to the people.... they dont steal most of it for themselfs.the poor can get help at least some kind of helping hand. best of all even most of the big boys that steal and get caught most go to jail.... u know the rest of the story..
have a nice day in la- la land.
buuuuuuuuut.................................
I bet Leonel is just rying to get through the next election with a little fraud and collusion he might even get in.
DR debt is today Sept 10th, more than 21,000 US MILLIONS, i would like to see on what base they criticize mejia if THEY DID EVEN WORST
Very good post I believed the finance ministers of Iceland and Ireland felt the same way
Those were not consider third world countries, do you know what happen when you try to apply first world economic model to third world countries (Jamaica might be a good case study for you, Bolivia and the Bechtel situation may also show you what happened when it gets real bad)
Side note You can not borrow your way into prosperity, debt fuel development mix with a weak tax base and a little kleptocracy added is never a good brew.