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Daily News - 16 March 2001
Senate passes free trade agreement with Central America
The Senate approved the Central American Free Trade Agreement. It postponed the approval of the FTA's protocols for six months so that the government may have time to renegotiate farm product concessions. Ambassador Maritza Amalia Guerrero, representative of the government before the World Trade Organization, protested the decision. She explains that the agreement clashes with WTO commitments.
The first protocol with Central America was that signed with Costa Rica, El Salvador and Guatemala (29 November 1998). Thereafter, protocols were signed with Honduras (4 February 2000) and Nicaragua (13 March 2000). These abstained at the time of the original signing of the agreement alleging heavy losses suffered during Hurricane Mitch in October 1998.
Herrera hospital to IDSS and SESPAS, President signs health bill
President Hipolito Mejia issued a decree in an attempt to resolve the dispute between the Ministry of Public Health (Sespas) and the Dominican Social Security Institute (IDSS) regarding the soon to be opened Herrera Hospital. Both government institutions sought the management of the new center.
Yesterday the President signed into law the General Health Bill that replaces the Trujillo Health Code that dates back to 1956.
Government denies deficit is due to increased payroll
Minister of Finances Fernando Alvarez Bogaert denied yesterday a report in the Listin Diario (see http://www.dr1.com/daily/news031501.shtml) that stated that the government had a RD$1,500 million fiscal deficit in January and that a loan from the Banco de Reservas was used to finance the deficit. The newspaper attributed the fiscal deficit to government overspending on new personnel. Minister of Finance Alvarez said that the deficit was due to foreign debt payments falling due in January. He said the government took out a US$130 million loan from private banks to meet these commitments inherited from the past administration. He said the loan will be paid with income produced by the Petroleum Law, as reported in El Siglo.
Alvarez said that the DR has one of the lowest indebtedness rates in Latin America, about 19.6% of its Gross Domestic Product, or US$3,600 million. He said the country is paying an abnormally high US$700 million a year on the debt.
He said the debt has been dropping, and consequently at the same time the reserves of the Central Bank. Monetary measures in place to maintain macroeconomic stability have resulted in a steep hike of interest rates that primarily affects local business. He said that real interest rates in the US are at 2.5%, in Central America at 5-6%, but in the DR at 18%. Alvarez says that no economy can develop at the present high interest rates.
He said this led his department to decide to issue sovereign bonds for the first time in DR economic history this year. Several leading US brokerage firms have shown an interest in underwriting the bonds. The idea is to be able to inject new capital into the economy so as to force a drop in the interest rates without further depressing the economy.
Alvarez said that this government is committed to continue the sound macroeconomic policy framework that has characterized the Dominican economy for almost 10 years now.
"The central government is handling itself like a small grocery shop ("pulpería")," he said. "The state is strictly spending only the money that comes in," he said.
Trickle of money for public works slows construction
El Siglo newspaper reports that there has indeed been a slow down in the rate of government construction on the mega projects left three-quarters finished by the past administration. Minister of Public Works Miguel Vargas said that his department is receiving less than half of the resources managed last year.
He said that to meet the ongoing construction requirements, his department would need RD$14,000 million, and he is only handling around RD$4,000 million this year. He said that his monthly assignment is RD$400 million, but that in January, his department received only RD$157 million budgetary disbursement for the constructions. Vargas commented that his department's funds have been gradually declining. He said in May 2000, the Ministry handled RD$400 million; RD$458 million in July 2000, RD$319 in August; RD$350 million in September and only RD$157 million in January.
This has resulted in delays in the completion of the new Ozama Bridge going up parallel to the Juan Pablo Duarte Bridge, the Avenida Las Americas expressway at the entrance to Santo Domingo, the Autovía del Este highway that links Santo Domingo and eastern cities and tourism areas; the Manoguayabo highway, the new headquarters of the Supreme Court, the library at the Universidad Autonoma de Santo Domingo, among other public works. The government was able to finish the Luperon overpasses.
Minister of Environment praises Presidential decision
After remaining silent when sectors spoke up against the Presidential decision to develop areas of National Parks, Minister of Environment Frank Moya Pons answered press questions at an environmental workshop held in Boca Chica yesterday that was attended by President Mejia himself.
Minister of Environment praised the presidential decision to request that the Senate put aside the bills that would modify the parks until the status of ownership of the properties is clarified.
President Mejia in a letter to the Senate said that he would wait until the Ministry of Environment submitted a bill establishing the use of protected areas as is established in the Environment Law (see http://www.dr1.com/daily/news01501.shtml). The Ministry is preparing the Ley Sectorial de Areas Protegidas that will contain this information. Moya Pons said that to draft the bill they are consulting spokespeople in the communities, businessmen that would benefit or be affected, and the civic society.
El Caribe newspaper points out that at the workshop, President Mejia disregarded the opinion of the ecologists, calling them "radicals" and maintained his conviction that these areas should be developed for the well being of the communities. "When poets talk to me, those that I may call ecologists living in outer space, those that are crashing in the stratosphere, digressing up there without landing, then I am concerned because one thing is what is ideal and the other what is possible. I am President for four years and I can't digress a lot. And even if I wanted or not, for reasons that be, there are two sectors that are the motors of the economy and these are free zones and tourism," said the President, as quoted in El Caribe. "I have to guarantee that tourists continue to visit," he stated.
Samana senator says he will resubmit hotel development bill
The Senator for Samana Ramiro Espino said that if the Ministry of Environment takes too long to submit the bill with the ruling of development of protected areas, he would resubmit the bill the President has requested be put aside. Espino feels Moya Pons has had enough time to submit the bill. He backs the bill that would allow hotel development of the Cabo Cabron National Park, seeing it as beneficial for his province.
Luggage porters besiege Puerto Plata International again
El Siglo newspaper columnist Orlando Gil says today that the luggage porters are back at the Gregorio Luperon Puerto Plata International Airport. He says that government and Aerodom management efforts had reduced their numbers, but they are now back, apparently for political reasons.
He says he is told that back with the luggage porters is the disorder and plundering of tourists at the terminal. He says provincial and municipal authorities needed to create the jobs to please their constituents. But he commented that the Puerto Plata travel businessmen think there is more to it. They comment there is a trickle of the "tips" to benefit several tiers. Like in the past, each luggage porter must pay a daily or weekly toll to keep the post. This passes on to different hands. This results in overly aggressive porters, that have been known to molest travelers.
Gil says that 150 luggage porters were given the jobs, regressing to a negative situation that had been resolved at the airport. Gil also criticizes the permissiveness of the authorities with the vendors that are found to be bothersome in hotel areas or that are taking over beach areas.
He said that the Minister of Tourism, being from Puerto Plata does not dare to contradict his fellow party members, even when he is aware that the situation hurts the tourism industry.
President Mejia is due in Puerto Plata for a government council on Sunday, 18 March.
Reynaldo Pared to be secretary general of PLD
Reynaldo Pared Perez leads the vote for secretary general of the Dominican Liberation Party, with more than 60%. He had a comfortable 10% lead over runner up Alejandrina German. Pared had the endorsement of PLD former presidential candidate, Danilo Medina. Former Vice President Jaime David Fernandez endorsed German. A third candidate, present secretary general Jose Tomas Perez endorsed Pared upon going into the second round vote. Pared won the first round with almost 49%, barely making the 50%+1 vote needed to win in the first round.
BHD announces merge with Banco Fiduciario y Gerencial
The Banco BHD presented the corporate identity change that marks the official completion of the merge with the Banco Fiduciario y Gerencial. To celebrate the merge, the bank held a dinner at the Santo Domingo Country Club that was attended by President Hipolito Mejia. At the event, the Bank presented its new goals and strengths, the new advertising campaign, and its shareholders from the Banco Popular de Puerto Rico and the Banco Sabadell of Spain. Michael Camilo and Guarionex Aquino delighted the guests of the dinner with a piano and percussion concert.
Two survive sunken boat off St. Martin
The Navy has confirmed that a Dominican man and woman survived the sinking of a boat on a clandestine trip from St. Martin to St. Thomas. Navy Chief Rear Admiral Luis Alberto Humeau Hidalgo confirmed that a fishing boat rescued the survivors two miles off the St. Martin coast. The sunken boat was the La Esperanza, with St. Martin registry. The Navy Chief said this is evidence of a St. Martin-St. Thomas-Puerto Rico human contraband route. News reports say that more than 20 cadavers have already shown up on the coasts of the French-speaking and Dutch-speaking island. It is believed 42 persons were on the sunken boat. The survivors were hospitalized in Philipsburg, St. Maarten, on the Dutch-side of the island.
Dominican baritone to sing for the Pope
Hoy newspaper reports on the success of Dominican baritone Raymond Tavarez. It highlights that he will become the first Latin American to sing the Magnificat before Pope John Paul II at the Vatican in Italy on occasion of the Easter celebration. Tavarez migrated at 18 to Italy where he studied at the Milan Musical School. Later he traveled to the US to begin a successful career. He has performed with Placido Domingo, Rafael Lebron, Pury Toro, Francisco Chain Casanova, Abraham Lincoln Okendo, among other classic lyric singers. He has also performed with pop performers, such as Rocio Durcal, Jose Jose, Braulio, Yango, Rafael de España, Jose Feliciano, Celia Cruz, Nelson Ned, Milly Quezada and Elvis Crespo.
Guinness record holders visit
El Siglo newspaper reports on the arrival to Santo Domingo of Liliana and Emil Schmid, a Swiss couple that has been on a world tour for the past 16 years. The couple entered the Guinness Book of World Records when they visited their 114th country, the Vatican. Emil Schmid told El Siglo that he started the trip in 1982 when his idea was to repeat the travels of Julius Verne. The couple never had children. He explained he has traveled extensively in America, Asia, Africa and Europe on board a Toyota Landcruiser all-terrain vehicle.
In the DR they will go East from Santo Domingo, and then onto Samana before heading South and West on their way to visit Haiti. While in the Caribbean, they will also visit Puerto Rico, and then Central America (Costa Rica, Honduras and Nicaragua). The maritime portion of their trip is sponsored by Nordana Line represented in the DR by E. T. Heinsen.
For more on their world tour, see
http://www.weltrekordreise.ch/a_starte.html
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