http://www.dr1.com/news.php#5
CDEEE moves debt to generators to Banco de Reservas
The governmental Banco de Reservas has picked up the debt that the Dominican government owes the Ege Haina electricity generation company. This US$251.6 million debt was taken on by the Banco de Reservas for US$309.1 million, as reported in Diario Libre.
Meanwhile, economist Alejandro Fernandez warns that the operation between EgeHaina and Edesur, Edenorte and EdeEste power distributors on 27 August 2015 by the CDEEE is illegal as only Congress can contract debt on behalf of the Dominican government. Fernandez comments that issuing bonds would have been a more transparent and less costly operation than that which was carried out to transfer the debt to the Banco de Reservas.
Amazing. Isn't bad debt usually bought at a discount?? Why would someone pay more for debt than what is actually owed? Is this bad reporting or bad decision making? I have not seen this much creating accounting since the US started QE1, QE2, QE3 . . . .
CDEEE moves debt to generators to Banco de Reservas
The governmental Banco de Reservas has picked up the debt that the Dominican government owes the Ege Haina electricity generation company. This US$251.6 million debt was taken on by the Banco de Reservas for US$309.1 million, as reported in Diario Libre.
Meanwhile, economist Alejandro Fernandez warns that the operation between EgeHaina and Edesur, Edenorte and EdeEste power distributors on 27 August 2015 by the CDEEE is illegal as only Congress can contract debt on behalf of the Dominican government. Fernandez comments that issuing bonds would have been a more transparent and less costly operation than that which was carried out to transfer the debt to the Banco de Reservas.
Amazing. Isn't bad debt usually bought at a discount?? Why would someone pay more for debt than what is actually owed? Is this bad reporting or bad decision making? I have not seen this much creating accounting since the US started QE1, QE2, QE3 . . . .