President Leonel Fernandez will travel to New York in September to take part in the seminar on the National Report of Human Development in the Dominican Republic 2005, on the theme: "Towards an inclusive and renewed global insertion". Clave Digital reports that the President will also travel to Washington, D.C., to participate in a meeting of the Inter-American Dialogue, an organization of which he is a member. The New York event is scheduled for Wednesday, 14 September, from 6:00 to 7:45 pm in the Lovinger Auditorium at Lehman College, Bedford Park Blvd., Bronx, NY. Those interested in participating must confirm their attendance no later than Thursday, 8 September, at 7:00 pm by calling telephone numbers 212-650-7496 and 212-650-5385.
On his September US trip agenda is also to participate in the Dominican Week events, organized by the law firm of Russin, Vecchi & Heredia Bonetti and the American Chamber of Commerce.
President Leonel Fernandez will be the keynote speaker during the business lunch scheduled for Monday, 12 September at the US Chamber of Commerce in Washington, D.C. (To participate, contact jdieguez@amcham.org.do) For more on Dominican Week, see http://www.rvhb.com
The continuous increase in the price of petroleum combined with expectations generated in economic sectors by the debate about the inevitable tax reform have caused the US dollar to increase in price in the Dominican market after months of relative stability. Diario Libre reports that yesterday, the US dollar was being sold at an average rate of RD$30.10. Finance Minister Vicente Bengoa justified the increase by saying that retailers have started to purchase commodities for their December stock and are seeking the hard currency in the market. According to El Caribe, Bengoa warned exchange agents not to purchase dollars thinking it will get costlier as the authorities have enough reserves to keep the market stable. He stated that the government will use part of its reserves for the payment of the external debt during September and October to minimize disruption in the foreign exchange market.
Finance Minister Vicente Bengoa, and the Japanese Ambassador in the DR, Haruo Okamoto, have signed an agreement whereby the interests on the Dominican debt are reduced, as reported in Diario Libre. The debt - 3.251 million yen (RD$837 million at the current exchange rate) - had been incurring interest rates of 8% and 4.2%, which have now been reduced to 1.04% and 1.5%, respectively. Bengoa said this agreement is part of the debt renegotiation with the Paris Club. According to Listin Diario, the renegotiation includes an 10-year extension for re-payment. Bengoa explained that this rescheduling will improve the management of economic and financial difficulties. Okamoto said this agreement represents the fourth re-structuring of the external debt of the Dominican government.
As part of the agreement the government signed with the World Bank (WB) to guarantee the financial feasibility of the energy distribution companies, two foreigners recommended by the multi-lateral organization have arrived and will be managing EdeSur's distribution and marketing departments. El Caribe reports that Chilean Alejandro Paul Gonzalez and Peruvian Ricardo Jose Arrese are here to make the service more efficient and increase collections from a greater number of users. A press release states that Ruben Bichara will continue as Manager of EdeSur. The Vice President of the corporation of state-owned electric companies (CDEEE), Radhames Segura, had said that the Manager of EdeNorte, Fernando Rosa, would be substituted by Peruvian Manuel Suarez, but this information could not be confirmed yesterday. EdeNorte and EdeSur, which supply almost 70% of the total demand, were re-purchased by the government during the last government and their privatization is part of the current administration's strategy to solve the energy crisis. The crisis became more acute during the past quarter and reached its climax with the recent general blackouts which were attributed to faults in the transmission lines. The goal of using foreign experts in these companies is to increase collections by between 70% and 80%. Currently, 47% of users do not pay for energy, causing the government to have to subsidize these companies. According to the Superintendence of Electricity, RD$1.39 billion have been disbursed in subsidies this year alone. Listin Diario reports that the two experts' contracts were signed yesterday by the president of EdeSur's Board of Directors, Rafael Alcantara, in the presence of Manager Ruben Bichara Jimenez and the other members of the Board.
The International Monetary Fund (IMF) mission that visited the DR from last 16 August to 27 August has reported that there has been no improvement in the electricity sector. IMF mission chief in the DR, Gue Meredit, said yesterday in Washington that although achievements within the program are still favorable, the DR had to request dispensation because it did not fulfill the goal established for the electric sector. This was due to the failure to target the subsidy and improvement in collections from users, plus an excess of employees in the electric sector. According to Meredith, there has been progress in structural reforms such as the bill for the improvement of fiscal operations and for the strengthening of the structure of monetary and financial institutions. The IMF is waiting for the tax policy framework for 2006 to be defined in the next few days, so that their technical and senior management teams can revise the Letter of Intent with the government.
The Association of Commercial Banks of the DR (ABA) has reacted with surprise at the inclusion of a tax on the interests on savings deposits applicable from 2009, which was included in the tax reform project. Clave Digital reports that according to the ABA, the tax, which is considered an advance towards the Income Tax, will actually be up to 25% and not 10% as reported by the press. The ABA recalled that the Director of the Tax Department, Juan Hernandez had stated recently that the government was not considering the inclusion of a tax on deposits in the tax reform. The ABA says that although the tax would not come into effect until 2009, its reference as an official decision sends worrying signals to the general public that saves for its future and to consolidate the basis for investment and economic growth of the nation. They claim this tax would distort the Dominican economy and pointed out some of the negative results it would produce.
President Leonel Fernandez appointed journalist Cesar Augusto Medina Abreu as Ambassador of the DR to Chile last night. Medina will substitute Miguel Angel Velasquez Mainardi, who died six weeks ago. Medina has had a lengthy career in journalism, having worked for Ultima Hora and Hoy, Uno mas Uno and Hoy Matinal. He is currently the presenter of Hoy Mismo, transmitted by Color Vision.
Policemen and Justice Department prosecutors are to be trained by professors from the University of New York's John Jay College of Criminal Justice. According to Diario Libre, the training will include criminal investigation, executive leadership, crime mapping, crime data collection, records maintenance and management, prevention of crime and forensic sciences. The university has also agreed to improve the Police Academy curriculum and to set up a Criminal Justice Institute in the DR. Interior and Police Minister Franklin Almeyda Rancier signed a memorandum of understanding yesterday with the president of NYU, Jeremy Travis. Almeyda said NYU was selected because it is the most qualified in the world in police training. The center has a student population of 10,000 of which 2,000 are of Dominican origin.
32% of the vehicles of the Metropolitan Transport Authority are either being repaired or have been trashed for being beyond repair. Clave Digital reports today that of the 1,081 vehicles of the institution, 322 units are in repair and 24 have been discarded. The online news service points out that the availability of vehicles is even less because AMET lent out 88 motorcycles to its sister institution, the National Police, to be used for patrolling. Likewise, of the total, 235 vehicles have been assigned to the provinces. Most of the vehicles were purchased in 2002. The vehicles were purchased with loans the country took with foreign commercial banks as part of the Plan Renove.
A technical assistance agreement has been signed by Juan Ormazabal, of the Center of Renewable Energy (CENER) in Spain, and Juan Japa, of COOPCANA, an association of 2,800 Dominican sugar cane producers, for the development of renewable energy sources such as bio-fuel, ethanol, and biomass, as stated in a report in Diario Libre. The objective of the agreement is to allow the cane produces larger profit margins and foster the production of clean energy.
Attorney General Francisco Dominguez Brito commended the Supreme Court of Justice for its decision to annul a court decision that had reduced the sentence to the four processed for the death of journalist Orlando Martinez (military Joaquin Pou Castro, Luis Emilio de la Rosa Beras, Mariano Cabrera Duran and civilian Luis Emilio de la Rosa Beras). In 1999, judge Katia Miguelina Jimenez had levied a 30 year sentence on the accused. But the court of appeals of Santo Domingo reduced the sentences to ones of 12, 15 and 10 years on grounds that the military were acting following superior orders. The Supreme Court decision annuls the appeals court decision and sends the case to the Penal Court of the Court of Appeals of San Pedro de Macoris for a review of the recourse.
The Dominican government has expressed its condolences to the authorities and people of the United States for the loss of human lives and damage caused by hurricane Katrina in the southern states. El Caribe reports that Foreign Relations Minister Carlos Morales Troncoso, sent a message to the US Embassy here expressing the condolences of President Fernandez's government and the Dominican people to the relatives of the storm's victims. The note also expresses solidarity with people who have lost their property. Morales stated: "We want the American people to know that our concern, our pain and our sadness for the situation they are going through, is sincere." Hurricane Katrina has a reported death toll of 100 and large-scale material damage throughout the states of Louisiana, Mississippi, Alabama and Florida.
The Dominican American National Roundtable (DANR) and its sister organization Dominicanos Unidos de Louisiana are urging everyone to please support the relief efforts in the Gulf States by donating to the American Red Cross.
DANR president, Cid Wilson reports that most Dominicans successfully evacuated New Orleans but some families still remain and it's unclear how they are doing. They have not heard or confirmed of any fatalities, he explained, but noted that communications are not good.
"We are praying for the safety of the many Dominicans and Latinos living in Louisiana as well as all of the people who have been affected by Hurricane Katrina," said Wilson. "This is the time for all of us to come together to support the relief efforts in the Gulf States region, especially in Louisiana where most Dominicans and Latinos reside and where there is risk of possible fatalities."
"We would like to thank everyone in advance for their support and prayers as our community in Louisiana begins the long process of recovering and rebuilding from the damage caused by Hurricane Katrina," said Anddry Reyese, president of Dominicanos Unidos de Louisiana. "This is a very challenging time not only for the Dominican community in Louisiana, but also for the people of Louisiana and the Gulf States. Together as a unified community, we will overcome the many challenges ahead of us during this tragic period."
If you wish to make a donation to the Hurricane 2005 Relief Fund set up by the American Red Cross, you can visit the following website: http://www.redcross.org/donate/donate/html
DANR is a non-partisan Washington,D.C.-based organization that advocates for the empowerment of Dominicans in the US and Puerto Rico.
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