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Santo Domingo.- The government put the International Monetary Fund (IMF) abreast of Dominican Republic’s fiscal situation both on the figures which have hit the target and those where it has fallen short of the goal.
The IMF mission continues its busy agenda with talks with the public sector where until next Wednesday it also plans to meet with business leaders to discuss monetary, fiscal, and external issues as well as the energy area.
The IMF mission also held a first meeting yesterday with the technical team of the State-owned Electric Utility (CDEEE), led by its CEO Ruben Bichara,to inform it of the sector’s current situation and the prospects for year end and 2013.
The energy issue is considered critical in the visit, which is part of the mission’s normal revisions known as Article IV, referred to in the Agreement of the IMF for all its members.
The electrical problem, according to local economists, has greatly contributed to widening the government deficit, not just from the prices on world market, but also the controversial contracts and the system’s intricacies.
Along with other costs, the Government's fiscal deficit had reached RD $ 78.0 billion to July, according to unofficial sources.
As to the tax burden, authorities say it’s 13% of the GDP, who are preparing for talks to strike a deal to improve tax collection.
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Show them the audit on the Holy METRO!
Had they known anything about electricity then as well as now they sure have known first comes the horse then the cart.
You don't lend money out to build a METRO without making sure the country as well as the place to be build has ample & sufficient power for it as well as the means to pay for the loan. Now it is too late to look into the electrical infrastructure,unless they are mandating its construction with loans.
Seems to me that some one up there in the IMF screwed up and now they are looking for a reason to negate additional loans,Either that or the present administration does not want to pay
additional commissions to the same lenders,for obvious reasons,bad enogh the interest is high
Better to negotiate loans with neigbouring states, without the large international organisations, that all have alternative agendas.
Thanks for reading between the lines.We are not diferent from the Mother Country,Spain that
spends more money than it takes in and that is why they are almost broke.
Contageous practice thru observations, we copied the bad habbits of Mother Country thru multiple visits by previous administrations as well as inherit same.
I bring this about because Spain as well build multiple routes (Bullet Trains) at very steep price
and are now paying for their loans at times of autsterity.
Nevertheless we can't and shouldn't compare ourselves to well developed countries but try to live within our means.We shouldn't max out our credit cards just because it is there.We have to be smart cosumers.
We are not the only country where Spain had planted its seeds that aren't in a hole. What a coisidence? Look around the British Empire and compare. Even little Portugal once an Empire has tighten up its buckle,in time of autsterity. so why can't we?
.