Power Generator Buy Back and the IMF, what is going on here . . . .

itsnyder;

I think the main thrust of the argument from IMF is that the Buy-back wasn't factored into the recovery equation from Hippo. He evidently did not tell the IMF anything about it, and/or purposely shielded his intentions. Perhaps he thought he could snooker the IMF into expanding the loan to include the buy-back after the fact.
Who knows???
Personally I think he was offered a big enough slice of the purchase price through the backdoor and couldn't resist.
It's a foregone conclusion he acted the whore to the Spaniards in the whole deal.
The up-front cost (when the Spaniards bought) is far-far less than what the got in the buy-back and the expenses intailed in operation/improvements, et., don't begin to add up to the price of the buy-back.
Another case of corruption and fraud.

Texas Bill

When a country bends over for the IMF, it can't put out for anyone else. If Mejia wants to suck IMF *&^( , then he better not pull down his skirt to any other pimps (Spaniard Companies).

Interesting that the IMF is even talking to Hippo after he screwed them. I would not be suprised, Mondongo, if he does score both kickback money from Union Fensosa and more aid money from the IMF. The mystery is: Why does the IMF feel like it needs to continually go forward with this stuff? Why is the IMF afraid of just walking away and not looking back? Is it because JP Morgan, Citibank and Salomon Brothers wouldn't like it?

The purpose of the IMF is to try and bring stability to a countries Financial System, avoiding Default and any Financial Ripples in the
Financial Markets that may be caused.

A lot of people hate the IMF but, they did not cause the woes in the RD, the government and the economy caused the deficits and the resulting collapse in the Currency.

I think the IMF will be the best solution for the RD as the RD cannot control Hippo's spending internally - the IMF will be an
external watchdog.

At this point, probably only help from the IMF and other International Banks are the RD's only way out.

A quote from that last IMF press release:

Press Release No. 03/205
November 26, 2003 International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA



Statement of the IMF Mission to the Dominican Republic
The following statement was issued today in Santo Domingo by Marcelo Figuerola, the International Monetary Fund's (IMF) mission chief to the Dominican Republic, at the conclusion of a round of discussions with authorities as part of the first review of the country's Stand-By Arrangement with the IMF:

"In discussion with the Dominican authorities in the past 10 days, we have made important progress in identifying policy options in key areas that would help strengthen the economic situation in the country. These include measures to check the rise in the fiscal deficit and public debt, relieve power shortages, strengthen confidence in the banking system, and ensure adequate external financing at this difficult time.

"The discussions will continue in early December, after the authorities have had an opportunity to consider the identified policy options in the context of the 2004 budget, which is to be presented to congress shortly. The authorities also aim to hold further discussions with other agencies supporting the country, including the World Bank and the Inter-American Development Bank," Mr. Figuerola stated.

Quoting an IMF press release is like asking Satan's public relations agent for comments about the quality of life in hell.

The IMF has never stabilized anything in Latin America. It continues to exist only to bail out the international investment houses who would have never lent money to the dicey DR government in the first place were it not for the tacit understanding that the IMF would come in a pay off the exhorbitantly costly debt after the government has stolen it all and defaults.

It's all a scam. The directorates interlock. Figure it out.

Porfy is right. All those IMF saps are paddling each other with those fat commissions they are getting from those loans. No DR gov't will ever honor the IMF or any other outsiders trying to rearrange the DR economy. The DR gov't wiil always find loopholes to benefit themselves while paying lip service to IMF technocrats.

BTW on a thread previously closed-Why do you think it was CLOSED",so you could continue it here???Moderator

Isn't one of the dislikes of the IMF is that they dicated to countries how THERE money is spent. I see them as a international loan shark but when you have corrupt leaders in DR
making deals with the devil(IMF) what good do you expect out of it.

The people's only fault is that they put these "leaders" in office.

I believe that:

1)The IMF did want the goverment to resell it.

2)I have no idea.

3)Yes, becuase the goverment requested their assistance, and then did not comply with the guidelines, so it's pretty much their fault.

What the IMF does is basically like giving an alcoholic a new liver and a barrel of rum.

Porfi, O&C, Sanc***, Conc***, all of you who badmouth the IMF, the WB, and the other loan institutions should ask yoursevles the essential question of "Why did any of the Governments of countries in question have to go to them in the first place.
Now, I don't like many of the policies of the agencies mentioned, but countries DO go to them for aid! You're trying to place the blame for fiscal ineptitude, corruption, stupidity and a lot of other things in the WRONG laps.
Face reality and ownup to the fact that the current and previous administrations are soley responsible for the economic malfunctions that exist.
If you were a banker, and I presume you're not, then wouldn't you want SOME assurances that the monies loaned were used for the purposes stated and that the borrower had the intention and capability of paying back???
All any of you are doing is rationalizing the basic problem; ie., that the DR government is trying to scam International organizations dedicated to rendering financial aid to countries that truly NEED it.
Frankly, if I were heading up the teams involved, I'd tell the DR and Hippo to go take a flying f*** at a rolling donut and turn my back on any other requests for aid of any sort.
The present government has virtually raped the nation and people like you all have allowed it to happen!
So, get off your high horse and speak from a truly informed, neutral point of view.

Texas Bill

Well I believe the intent and cause of the IMF is noble. And of course the IMF has the right to insist on many stipulations in order to release that money.

But what happens over and over is that you are giving money to politicians who will find a way to steal from it or channel it into places where they get kick backs.

Corruption is almost institionalized in the country, the Dominican people basically accept the fact that when you're in government you have the right to be 'on the take.'

For example, we have a staff member who constantly complains about corruption in the country. Then I remembered what he had told me proudly a few months ago:

He was in the army and now his general is still collecting his salary. He is a 'ghost' soldier. So in 10 or 20 years when the 'ghost' retires he will get a fat benefits check. In the meantime the army pays his salary to the general. All at the expense of the tax payer of course.

And he complains about corruption!

Until this mentality is changed, nothing else will change.

> He was in the army and now his general is
> still collecting his salary. He is a 'ghost' soldier.
> So in 10 or 20 years when the 'ghost' retires he
> will get a fat benefits check. In the meantime the
> army pays his salary to the general. All at the
> expense of the tax payer of course.

Well in case your staff member is wondering I can tell him how this will end:

Within 12 months - 5 years, there will be a shakeup in the army, and they will clean up all these kinds of "ghost military". Your staff member will be removed from the payroll (so his not saving for retirement will hurt him), and the general will apologize profusely and say "imaginate.. que se puede hacer..", while pocketing the extra money he received.