http://www.listindiario.com.do/antes/marzo04/190304/cuerpos/republica/rep4.htm
According to Listin Diario, and a member of the PRSC, Leonel knew in his first term that Baninter was in financial trouble, and gave millions of millions of pesos while ignoring irregular management within the bank. Why did he have the Central Bank issue such money, and if this happened on his watch would it not make him equally responsible for the collapse of Baninter? I consistently hear from others the assumption that Baninter was hipolito's fault. This would seem to show otherwise.
I understand that Hippolito's guarantee of funds stored in the bank did hurt the value of the currency, contributing to part of the crisis, but had he not, wouldn't the country have found itself in a complete banking crisis when foreign observers lost confidence in all of the banks and the governments unwillingness to iinsure them? What would happen to the United States if it didnt guarantee atleast $100,000 dollars (approximately $2,880,000 pesos currently) through the FDIC? Soeither way no matter what Hippolito had done the country would have suffered whether bank funds were guaranteed or not, so....
I would also like to know how much Leonel's non-repaid loans to Baninter aso affected the economy as that would effect the economy in the same manner as bank guarantees, raising inflation. Now part of the crisis was also dependent on the collapse itself. If Leonel was negligent in his oversight of Baninter allowing the collapse and placing Hippolito in a basic lose-lose predicament who would be responsible? In my opinion both PLD and PRD, because i believe hipolito was also negligent in the beginning, though i believe he made the right decision to help preserve confidence from a national perspective of the banking system. I do however believe that while hipolito may just have been ignorant as to what was going on, I do believe that by the actions taken to move funds fom the Central Bank to Baninter during Leonels first administration, that it puts the crisis right at his lap and shows a degree of knowledge of the matter beforhand, for this, and the fact that it took place before the mejia administration is why in the end i hold leonel with a much higher percent of the blame for the economic crisis
Top that with the sudden increases in crude oil prices, september 11, and americas economic troubles, and worldwide economic hardships, any rise in price of imports would exponentially increase with the inflation of Baninter further exacerbating the burden on the Dominican people. Leonel faces this problem today. That is why he promised to lower prices, and yet gasoline is over 100 pesos per gallon, and it will keep rising, just as it did with hipolito, because sadly as a third world country the economy is more fluid and vulneravble. I feel that people have put an undue burden against Hippolito, as many of his "problems" do not fall short from Leonels own.
Maybe you disagre. Either way, just to give you all a perspetive from a PRD supporter, if you disagree, than try to convince me. I, as well as many others that see it the same i should hope, are open minded and would probably like to see why supposedly Leonel can wipe his hands clean from the crisis as if he had no part. And as a side note, this is the article that began to shift my views away from the PLD, a month before I was so fet up with the crisis that even I was singing "ojal? que vuelva Leonel" from his commercial to he tune of that song "Ojal? que llueva caf?". I remember reading it in disbelief at a public library while in Santo Domingo. From there i bega my quest to find who was really responsible for the crisis. Then with my views against privitization, and fear of the party of Balaguer, I made my PRD alliance. Its prbably not important, but it is just one of the many stories of the avg dominican i guess, a window from the other side maybe i am wrong.
According to Listin Diario, and a member of the PRSC, Leonel knew in his first term that Baninter was in financial trouble, and gave millions of millions of pesos while ignoring irregular management within the bank. Why did he have the Central Bank issue such money, and if this happened on his watch would it not make him equally responsible for the collapse of Baninter? I consistently hear from others the assumption that Baninter was hipolito's fault. This would seem to show otherwise.
I understand that Hippolito's guarantee of funds stored in the bank did hurt the value of the currency, contributing to part of the crisis, but had he not, wouldn't the country have found itself in a complete banking crisis when foreign observers lost confidence in all of the banks and the governments unwillingness to iinsure them? What would happen to the United States if it didnt guarantee atleast $100,000 dollars (approximately $2,880,000 pesos currently) through the FDIC? Soeither way no matter what Hippolito had done the country would have suffered whether bank funds were guaranteed or not, so....
I would also like to know how much Leonel's non-repaid loans to Baninter aso affected the economy as that would effect the economy in the same manner as bank guarantees, raising inflation. Now part of the crisis was also dependent on the collapse itself. If Leonel was negligent in his oversight of Baninter allowing the collapse and placing Hippolito in a basic lose-lose predicament who would be responsible? In my opinion both PLD and PRD, because i believe hipolito was also negligent in the beginning, though i believe he made the right decision to help preserve confidence from a national perspective of the banking system. I do however believe that while hipolito may just have been ignorant as to what was going on, I do believe that by the actions taken to move funds fom the Central Bank to Baninter during Leonels first administration, that it puts the crisis right at his lap and shows a degree of knowledge of the matter beforhand, for this, and the fact that it took place before the mejia administration is why in the end i hold leonel with a much higher percent of the blame for the economic crisis
Top that with the sudden increases in crude oil prices, september 11, and americas economic troubles, and worldwide economic hardships, any rise in price of imports would exponentially increase with the inflation of Baninter further exacerbating the burden on the Dominican people. Leonel faces this problem today. That is why he promised to lower prices, and yet gasoline is over 100 pesos per gallon, and it will keep rising, just as it did with hipolito, because sadly as a third world country the economy is more fluid and vulneravble. I feel that people have put an undue burden against Hippolito, as many of his "problems" do not fall short from Leonels own.
Maybe you disagre. Either way, just to give you all a perspetive from a PRD supporter, if you disagree, than try to convince me. I, as well as many others that see it the same i should hope, are open minded and would probably like to see why supposedly Leonel can wipe his hands clean from the crisis as if he had no part. And as a side note, this is the article that began to shift my views away from the PLD, a month before I was so fet up with the crisis that even I was singing "ojal? que vuelva Leonel" from his commercial to he tune of that song "Ojal? que llueva caf?". I remember reading it in disbelief at a public library while in Santo Domingo. From there i bega my quest to find who was really responsible for the crisis. Then with my views against privitization, and fear of the party of Balaguer, I made my PRD alliance. Its prbably not important, but it is just one of the many stories of the avg dominican i guess, a window from the other side maybe i am wrong.