"Leonel",Sticks His Head In The Sand"! Or Up His A$$!

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Criss Colon

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He has broken off the DR's agreement with the "International Monetery Fund".He doesn't want to proceed with the measures that are required by the accord to recieve the additional 500 million US dollars.The big issue is the stipulation that the DR increase the electricity costs by 18 %.Now, they are so high already,because the political parties fear a national riot,if they actually make everyone pay for the electricity they consume. The rates are alredy some of the highest in the world!
What Leonel will do,certainly the "IMF" is aware of this,is take credit for holding firm against the "IMF",but ONLY until after the elections!
After the elections,he will not only raise the electric rates,the DR can not survive without the IMF and other international loans,he will also raise "Taxes" on just about everything else!
The DR is BROKE!
They produce nothing to sell to get dollars in the international markets.They have the Billions sent home by expat dominicanos,drug money,and loans.That's IT!
It's a house of cards.It's a castle built on sand!
And thanks to the greedy,corrupt "Politicos",it only gets worse.
DR peso at 45 to 1 by Jan.2013!!!
BANK on it!
Cris Colon
 
H

Hipocrito Mejia

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Jan 5, 2006
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The PRD kept warning for months that this was coming, and the administration kept denying it; but here we are. The game of smoke and mirrors economics can only be sustained for some time, and it won't be long before it blows up, regardless of which party wins the May elections. Soon enough, it will be time to pay the piper!
 
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zoomzx11

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Jan 21, 2006
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45 to 1!!! Can we take that to the bank? Hmmmm, my house will be worth a fortune in pesos if I can find someone to buy it.
All that aside I agree. This country cannot continue on its present path. Is the DR searching for oil? They better come up with some sort of idea. Can we assemble Apple computers here? Will be cheaper shipping than China. And I dont think Dominicans will jump off the roof of the workplace if things do not go well on the job.
 
waytogo

waytogo

Moderator - North Coast Forum
Apr 3, 2009
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Guess it's time to stop converting my dollars into pesos.........
I hold a LOT of future toilet paper.....

B in Santiago
 
PICHARDO

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Why should the majority of Dominicans that pay their tab for electricity have to pay even more for the same service to cover what the IMF wants (which is to reduce the subsidy from the gov to the sector based on the missing collections of unpaid users). The DR and the IMF had an agreement which was met according to both sides, which was the required minimum number of paying clients in the grid.

The IMF now asked (more like demanded) the gov hiked the rates in order to reduce the subsidy expected to rise as energy prices soar in the common markets.

Simply put, they are using strong arm tactics to force the gov into action based on the lack of enforcement of non paying clients. That's a 180 on the minimum set for the new revision for 2012.

The gov as expected given how people are complying more with the enforcement and focused BonoLuz program in poor areas, said no...

I support that "no" to the IMF!

The DR can not only survived without the IMF, but also do much better in parts where the IMF has stagnated local growth in favor of external markets. Like the gov's compliance to the IMF reduction of subsidies to the local farmers and industry.

The gov can close the gap of the deficit by simply going tough on tax evasion unlike today. Tax evasion in the DR is monumental, so much so that can be said to be equal or greater to what's reported for revenues as of now.

Not only that, but also RE tax based on rentals that go unreported by as much as 70 to 80% in some areas.

It's time the DR took off the training wheels that are the IMF and IDB for good.


The worst that could happen is a default, which means a lot of public botellas looking for real work.

The tax on cigarettes, tobacco products, beer and spirits is a joke in the DR...

There's plenty of juice from where to squeeze from, not much political will to follow it...

The solution to the energy debacle in the DR is to let the energy providers bill directly the users, pool the grid under their care as case partners to upgrade and maintain it. Let them be able to sue the pants off law breakers tapping into the grid as our expense. Let the gov for once pay their tab from their assigned funds or use candles when used up.
 
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belgiank

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Jun 13, 2009
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I am sory Pichardo, but this is a joke. I know plenty of expats living here, who would be willing to pay edenorte bills, but who where told they were living of the grid, so edenorte could not be bothered.

I know fincas where the expats living there are paying a measly 1,000 rds per month, having ac, a pool, etc... and supplying 5 other homes with free luz...

So pls do not blame it on the IMF who only want some correctness, but blame it on the government, and their controlling of those ladrones like edenorte... (why should we work???? ....)
 
PICHARDO

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Allowing the energy providers to bill directly to the users according to a pooled quota based on a shared grid, the power generators can police better the grid and carry out the needed upgrades in effort to get more paying clients.

The gov is the largest non-paying ladron of electricity. That's a documented fact!

Like I said, it's beyond time that the gov gets their hand out from the electricity monopoly and seek other cows to squeeze.

Not a penny more for billed electricity when the effect will just make it worst and make those that today don't pay a penny, really avoid it 100% in the future.

What the IMF wants is a short term fix that will only create a bigger mess in our hands. Not that the gov is saying no because of that (as their interests lie with the negative political will it will create in the people for the official party) but also at the end of the Day, for them it also means having to fork over more for the tab they pay as well (when they feel like it).

I for one can say this 100%: The IMF should ask instead that the DR gov remove the subsidy to the electrical sector in favor of only using the Bono Luz in a massive way to address the poor and extreme poor which won't be able to afford the hike.

The big difference from the subsidy, is that the Bono Luz program is paid to the generators as tax write-off (discounted from their taxed imports/profits) in DR pesos. The gov needs that USD$ income for foreign currency reserves, so it's stalling the due process.


In my view public utilities should not be taxed, but only the income profit generated by the power generators at the corporate level. Force a pooled 10% VAT that's to be collected from the bills to improve the grid and maintenance alone for all generators to share.



That should take care of the energy problem in the short to mid term, once the power supply + grid and demand are on a optimum level, reverse the tax free billing from the end user and apply the local taxes as usual.

The gov will never be able to maintain or much less improve the grid as they are today or will be in the short to mid term.

Private corporations are driven by profits, not deficits. They're the ones that will seek 100% redundancy and improve the grid to optimum standards.

The big mistake of the gov when they privatized the electrical sector, was to remain a player in the mix. Gov should regulate not be in charge of biz looking to make a profit.
 
R

rubio_higuey

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Feb 7, 2007
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Pirchardo you are forgetting that any "temporarily" imposed tax becomes permanent and that is the nature of life in the DR. As was the case with 10% telecom tax which was supposed to be "temporary". So putting a 10% VAT tax on electricity would be akin to increasing the electricity cost by 10%. It would stay forever.
 
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Deyvi

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Dec 23, 2009
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The rate should be at 45 to 1 now. No secret, it has been not been real for most of the administration. Yeah, a totally bogus economy. Power is big part of the issue and until everyone pays it won't be corrected. I remain amazed with all the bulbs burning in the middle of the day because people don't pay. It should all be very simple!! Europe and the US have spent billions over the years to try and retify this and we all know where the money has gone. The solution should be simple. example; No Meter NO Luz!!! Chips are cheap in bulk. The person makes a downpayment of say? 1500-2000rd for the meter. After he pays his bills for 18 months the meter deposit is returned. Not only would this stop waste, but would stop the owner from people taping into their power. They police it themselves. Meter gets read 30 days after installation and the owner can get their wake up. If they do not want change their consumption or collect from the people taping in WAH LA say goodbye to the meter and hello candles!! I have another solution!!! Let's send Obama and his cronies down to run the DR for six years. Tax the s---- out of the wealthly that have raped the country. A true and totally legitmate redistribution of wealth. Then put them on a Yola.
 
C

Criss Colon

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Pichardo remains in a "Trance",and continues "Speaking In Tongues"!
EASY solution,
"EVERYONE",pays for the electricity they consume"!
"DONE",PROBLEM SOLVED!
CC
 
cobraboy

cobraboy

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Jul 24, 2004
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Many Dominicans just think electricity should be free. There would be civil unrest should ALL be forced to pay.

And the politicians KNOW it!
 
C

Criss Colon

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"CB",that has been the standard problem for twenty years!!!!
My bill is 15 to 16,000 pesos a month.
If half that money,and half of every other payer,went into circulation in the general economy,think what that would accomplish!!!
To bad it won't happen.It's harder for the government to steal money from the general economy!
Harder to have Danish Bank accounts with 43,000,000 Euros!
CCCCCCC
 
P

playacaribe2

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Jan 9, 2004
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[QUOTE said:
PICHARDO;1057597]Why should the majority of Dominicans that pay their tab for electricity have to pay even more for the same service to cover what the IMF wants (which is to reduce the subsidy from the gov to the sector based on the missing collections of unpaid users). The DR and the IMF had an agreement which was met according to both sides, which was the required minimum number of paying clients in the grid.
Click to expand...

Pichardo:

..."Agreement was met according to both sides"....cite to a reference on that one, please.

The IMF has stand by reviews to measure whether you are living up to your end of the agreement and, if so, further funds are distributed. If you do not reach your benchmarks, the IMF as is so often the case, grants waivers or amends the agreement IF they see enough compliance to warrant it. There has been no compliance as to electricity rates and we all know why. Leonel cannot raise rates or he risks losing the Presidency for the PLD...its that simple.

So now the IMF, which is normally very flexible...has said enough. They have frozen the last 500 million dollar disbursement....which you desperately need. Not only because the government has used it in their budgetary calculations...but because until this is resolved.....no more loans, other than those already committed to by other agencies under the IMF umbrella will be forthcoming.

The IMF now asked (more like demanded) the gov hiked the rates in order to reduce the subsidy expected to rise as energy prices soar in the common markets.

Simply put, they are using strong arm tactics to force the gov into action based on the lack of enforcement of non paying clients. That's a 180 on the minimum set for the new revision for 2012.
Click to expand...

Strong Arm? I doubt it. As I said, they are a lender of last resort and their loan terms are the most flexible on the planet. They just require austerity for those terms. But, even they have now had enough...for the moment.

I support that "no" to the IMF!

The DR can not only survived without the IMF, but also do much better in parts where the IMF has stagnated local growth in favor of external markets. Like the gov's compliance to the IMF reduction of subsidies to the local farmers and industry.

The gov can close the gap of the deficit by simply going tough on tax evasion unlike today. Tax evasion in the DR is monumental, so much so that can be said to be equal or greater to what's reported for revenues as of now.

Not only that, but also RE tax based on rentals that go unreported by as much as 70 to 80% in some areas.

It's time the DR took off the training wheels that are the IMF and IDB for good.
Click to expand...

Excellent! Now go the IMF.org and look up the amount of loans the DR currently has outstanding and set up a payment plan. I know the IMF will be pleased to hear the good news.

The worst that could happen is a default, which means a lot of public botellas looking for real work.
Click to expand...

I do hope that this was an off the cuff remark....as a Default would trigger the other provisions of the IMF agreement....which I know you won't like. Further your economy would collapse and lead to a long long period of hard times. You owe so much now to the IMF/WorldBank etc., that you have few choices. Take a long look at Greece. If they recover it will take at least ten years of hard times.....and they will only recover if they accept the ECB's and the IMF's terms. You do not have the ECB standing behind you and then you say you are done with the IMF.

Good Luck.



Respectfully,
Playacaribe2
 
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nas

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Jul 1, 2009
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Deyvi; Let's send Obama and his cronies down to run the DR for six years. Tax the s---- out of the wealthly that have raped the country. A true and totally legitmate redistribution of wealth. Then put them on a Yola.[/QUOTE said:
Here is the only problem with this: Wealthy people always find ways not to pay taxes. The middle class will get stuck with the bill. It troubles me that whenever there is a deficit, "Let's raise taxes". No, let's first address the problem. In this case, electricy enforcement must happen, even if there is an civil unrest. We do need a revolution to fix this problem.
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R

Rhardwood

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Feb 16, 2012
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You forgot the government's massive expending in non essentials and overruns. As an example, the road Jarabacoa-Constanza that 5 years ago was supposed to cost RD$8 million per kilometer, was finished at RD$140 million per km. And the government claims a yearly inflation of 7.5% or single digit each year they have been in power. It doesn't compute. Now, who's lying or stealing?
 
C

Criss Colon

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Not to worry.
After the elections,you will see the electricity price hike,mucch higher/broader based taxation,and the IMF,per usual,extending the accord yet again.
The DR,just like Greece,is addicted to all the "FREE MONEY" from international lenders.
And we know the "Prognosis" for that addiction!
CC
 
PICHARDO

PICHARDO

One Dominican at a time, please!
May 15, 2003
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cobraboy said:
Many Dominicans just think electricity should be free. There would be civil unrest should ALL be forced to pay.

And the politicians KNOW it!
Click to expand...



[h=3]Residents destroy electricity meters[/h]Residents in the Cristo Rey sector of the capital have started to cut cables and destroy their electricity meters, which were installed by Edesur to change them from a fixed tariff to a metered one.

Most residents said that they do not earn enough to pay between RD$2,000 and RD$3,000 pesos for electricity, because they are either on minimum salaries or have irregular incomes.

The protests began with a march last Friday, February 10 and local residents have painted signs on their houses saying, "Say no to meters. We want fixed tariffs".

Quoted in El Nacional, neighborhood group leader Sandalio Gutierrez confirmed that local residents were not refusing to pay, because they have always paid fixed charges of between 300 and 600 pesos a month. He said that these figures could be adjusted within the means of the majority.

He said that if they paid electricity bills of RD$2,000 what would they have left to spend on food, and that in his 47 years of living there he has never received an electricity bill.

Gutierrez complained that Edesur had installed cables, then meters and demanded that they sign contracts, which most had refused to sign, but had never sat down to talk with the residents.

The community leader added that a group from the neighborhood committee had made several attempts to set up a meeting with Edesur, without success.





They WANT to pay what they want, not what they use with their wares at home, including a/c units in a lot of them...


Like I said, let them be on candles for all I care...

Enough free rides already!
 
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