Santo Domingo.- Economists and business leaders agree with the International Monetary Fund's (IMF) warning on the sustainability of Dominican Republic's public debt and the need to adjust the tax base, as the same thing they’ve been demanding.
"What the IMF has done is remind the country, in a very soft way, of the set of reforms that it has pending," said the economist Pavel Isa.
"This time we agree with what the Fund is saying, what it's reiterating that if the country doesn't sit down to discuss fundamental issues such as fiscal reform, reform of the electric sector, institutional reform and governance, as it says, the economy and people will end up paying the consequences," Isa said.
For Herrera and Santo Domingo Province Industries Association (AEIH) president Antonio Taveras, what the IMF has said is the same thing they’ve been saying, despite macroeconomic growth and stability, "the country is entering into a situation of fiscal unsustainability."
"The government's current spending is very high and the commitment of the debt already reaches almost 40% of the budget," Taveras said, and warned that the country faces threats from the international scope, such as the possible rise in oil prices and US Federal Reserve interest rates.