The government will renegotiate the sovereign bonds as it seeks to borrow US$250 million in Spain to meet the requirements of the Paris Club and resume the standby arrangement with the International Monetary Fund, as reported in El Caribe. Finance Minister Vicente Bengoa said that they are in the process of choosing the company that will assist with the renegotiating of the bonds. The minister also said that for the remainder of the year, the government is facing foreign debt commitments of US$400 million, primarily to cover bilateral debt and amounts owed to commercial banks, the World Bank and the Interamerican Development Bank (IDB). Bengoa said he will travel to Spain with Technical Secretary of the Presidency Temistocles Montas and the economic advisor to the Executive Branch, Julio Ortega, to meet with high-ranking officers of the Spanish government.
Central Bank governor Hector Valdez Albizu told representatives of the business community during a meeting at the Central Bank on Monday that the government has eliminated 39,271 jobs (or 12.2% of occupied posts) from the public payroll in the past two months. As reported in the Listin Diario, Valdez Albizu said the dismissals represented savings of RD$258.2 million in September, compared to July, and annual savings of RD$3 billion. He said that 97.4% of the firings happened in September, when 38,378 employees were let go, most from the Presidency of the Republic. He said that as of July, there were 322,763 employees, a number that was reduced to 283,492 in September. This is 29,293 permanent jobs (9.5%) of a total of 280,340 and 9,978 temporary positions (76%) of 13,130 contracted employees. He said that 5,274 employees were cancelled from the Presidency of the Republic, 4,426 from the Ministry of Education, 9,251 from the Ministry of Public Health, 5,851 from the Ministry of Agriculture and 5,459 from the Ministry of Public Works.
Diario Libre ironically points out today that, thanks to a conflict of interests, one of the most serious environmental problems caused by the Duquesa garbage dump may be resolved. Prior to leaving government in 2000, the Fernandez administration granted the lands of the Herrera International Airport to a group of engineering companies in lieu of payment on a debt for the construction of the Duarte Highway. But, in order to take over the lands, the airport operations needed to be moved. For this purpose, the government eventually spent over RD$1 billion to build a new airport, an amount that is similar to the debt owed to the engineers. For the airport, the government chose a site in northern Santo Domingo. The planners of the new airport did not heed warnings that the terrain was inadequate, which increased the cost of the runway preparation. Neither did they heed warning that the site was too near the Duquesa garbage dump and the La Isabela river eco-system, both of which lure birds to the area that make it inappropriate for the operation of the new aircraft facility. Now, the engineers hope to resolve at least the problem of the garbage dump and have offered to advance the government RD$19 million to improve the drainage system, bury the garbage and improve the access roads. The present occupants of the Herrera International Airport say they will only move to the new facility once it has been certified by the US FAA.
US members of Congress Hilda Solis, Henry Waxman, Charles Rangel, Ciro Rodriguez, Sherrod Brown, Sander Levin, Linda Sanchez, Thomas Allen, Jim McDermott, Raul Grijalva, Xavier Becerra and Pete Stark have sent President George W Bush a letter, dated 30 September, addressing concerns that provisions in the DR-CAFTA free trade agreement signed by the US and Dominican governments are adverse to the wellbeing of Dominicans. The legislators state that certain facets of the DR-CAFTA restrict the access to cheaper generic drugs, which violates agreements previously signed by the United States with the World Trade Organization (Doha Declaration). The DR-CAFTA is pending congressional approval in the US and DR legislatures for it to go into effect. The legislators say that the inclusion of intellectual property restrictions in US bilateral free trade negotiations with developing countries in Latin America would grant five to eight years of exclusivity for brand-name pharmaceutical products, even where patent barriers no longer exist. "For any patient, five years without access to affordable drugs can mean the difference between life and death," argued the legislators. The group objects to the fact that the Bush Administration has refused to include explicit exceptions to protect public health or references to the Doha Declaration in the text of the trade agreements. It is furthermore opposed to the fact that US Trade Representative Robert Zoellick has instead proposed the use of side letters, as put forward in the DR-CAFTA, because the language would need to be resolved through legislative history. They urge that the language in the FTA be clear and specific in order to meet the public health needs of the countries' citizens and enable them to continue to use the flexibilities explicit in the Doha Declaration, including parallel imports and compulsory licenses. For the complete letter, see http://www.dr1.com/news/2004/101304_pharmaceuticals.pdf
The ambassador of Venezuela in the Dominican Republic, Francisco Belisario Landis, said that the Dominican mission made up by Secretary of the Presidency Danilo Medina, Technical Secretary of the Presidency Temistocles Montas and Ambassador Miguel Mejia have been meeting with Venezuelan government officers regarding the fuel issue, as reported in the Listin Diario. On the agenda is the Dominican government's desire to secure financing to import fuel from Venezuela, the Dominican Republic's main source of petroleum. The Dominican Republic seeks to obtain financing through Bandes (Banco Venezolano) to import fuel and petroleum byproducts. The Venezuelan ambassador made this statement while denouncing the fact that while this is going on certain business groups, with no links to either government, have mobilized to defend their own interests. He said that while such a strategy is understandable, what is repugnant is that they are choosing unethical and immoral ways to achieve their goals and profits.
The government advanced US$14.8 million to the Cogentrix power plant in San Pedro de Macoris so that the facility may be activated to fill the void left by AES Andres that goes offline tonight. Since the start of this government administration, Cogentrix has already received payments of US$19.4 million, signifying a total of US$34.2 million. Engineer Francisco Mendez, the current superintendent of power, regretted that AES Andres would have to remove its 255 megawatts of capacity from the national grid for lack of resources to stock its fuel. Mendez said that the Smith Enron power plant in Puerto Plata is also shut down for a lack of resources. He expected a US$5-million payment on behalf of the CDEEE to be made to that company to resolve the situation. As reported in El Caribe, Bengoa said that so far this year the Fernandez government has paid US$63.8 million to the power generation companies to improve service. Hoy newspaper reports that supply stood at 1,254 megawatts yesterday, while there is a demand of 1,700 megawatts.
A large number of Dominican private companies have increased the wages of their employees, by a range of 22% to 40% so far this year, according to a survey of businesses, says the Listin Diario. Elena Viyella, the president of the National Business Council, said that the adjustments that the companies have already made should be taken into account if a new general wage authorization is enforced by law. The Chamber of Deputies will hold a public hearing on Monday regarding the general wage increase. Deputies Cristian Paredes and Hector Mora advocate a 25-30% wage rise, while a labor union proposal calls for a 60% increase to those earning less than RD$20,000 a month. Most business sectors are not in favor of a Congressionally legislated wage increase across the board. Advocates of the wage increase point to the 32% inflation this year and the index of consumer prices from December 2002 to August 2004 that increased 89%.
The motorcycles that circulate in the DR providing taxi service to the general public and a way to earn a living to thousands are the newest victims of the wave of violence affecting the nation. Listin Diario reports that five motoconchistas were murdered this week on the eastern side of Santo Domingo by assailants who were after their motorcycles and the money they earned that day. The victims lived in low-income neighborhoods. Police reports show that last year, 1,204 individuals reported their motorcycles stolen. Of that number, the police recovered 363.
The National Dialogue meeting concluded yesterday with a call for the government to give priority to creating the conditions that will allow a return to tranquility and an end to the violence in Dominican society. The body that comes together for discussions on national issues in government, business, religion, politics and civil society groups says that the government must improve its logistic support to the National Police and provide it with communication and transportation resources, as well as contribute to the efforts of the Ministry of Interior & Police and the Attorney General's office to purge the institution of delinquent agents. The members of the National Dialogue say that the causes for the present crime wave are the impunity that has accompanied past criminal acts, the increase in unemployment, hunger and social inequality, absent fathers, corrupted ethic values and the lack of confidence in the authorities.
Red, rose and white wines from the Neiba region could be commercially available by next year. The first wine production produced by the Plaza Cacique experimental station in Neiba turned out 2,000 bottles. Inocencio Cuevas Herasme, who is in charge of the station, told El Caribe newspaper that the first round of commercial production will be available early next year after the January harvest. He said that an advantage of the Neiba production is that while it normally takes a plant three years to develop, grapes in Neiba can be harvested after one year, a fact that has surprised the Italian technicians who are serving as advisors to the project. Grape harvesters in the southwestern area of Neiba produce 40,000 to 45,000 quintals (about 46 kilograms or 101 pounds per quintal) of grapes yearly in 3,000 tareas (one tarea is equal to 629m2). Local brands will include Ney Rose, a blend of the Aramon vine that originally came from Spain and a French Aramon vine grape. Ney Blanco comes from French Colombard blended with Fiano and Vermentino. Ribera de Panzo, a red wine, is produced from Tempranillo and Cabernet varieties.
The New York Yankees won Game 1 in their showdown against the Boston Red Sox by a score of 10-7. Bostonites are attributing the loss to Red Sox star pitcher Curt Schilling, who allowed six runs in the first three innings in this first installment of the best-of-seven series American League Championship. The pressure is now on fellow star pitcher and three-time Cy Young award winner, Dominican Pedro Martinez.
See http://mlb.mlb.com/NASApp/mlb/mlb/news/...
Sunday, 31 October is the date for speed racing fans at the Las Americas International Racetrack. Miller beer is sponsoring the first ever Dominican Miller American GT Series round in Santo Domingo, where Dominican racers will face their counterparts from the United States and Puerto Rico. Competitors from the US will include: Jack Busch, Charlie Wester, Eric Curran, John Finger, Worordson Duncan, Michael Brockman, Meter Mohrhauser, Fran Cioppentinni, Jim Holton, Hill Rozmahzl, Bod Bumphreys and Mike Canney. From Puerto Rico: Mandy Gonzalez, Folly Falgueras, Wally Castro, Edison Lluch and Juan Vento. The Dominican speedsters are: Luis Rafael Mendez, Manen Mendez, Tony Canahuate, Adriano Abreu, Juan Ramon Lopez, Jorge and Jose Leroux. See http://www.americangt.com/
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.