The preliminary studies for the construction of a monorail on Hermanas Mirabal Avenue in Villa Mella have already begun. Ground surveys are being done by Actuacion Tecnologica en Construccion (ATECO) to determine the quality of the ground where it will be built, as reported to Clave Digital. According to Margarito de Leon, liaison between the Santo Domingo Norte City Hall and the Transport Reorganization Office (OPRET), the monorail will be "like electric buses". This sort of mass transport system is currently in use in Curitaba, Brazil; Bogota, Colombia; and Santiago de Chile. In its first phase, the monorail will run approximately 4 kilometers. The project is being built by OPRET, which is directed by Diandino Pena. As of last Wednesday, the surveys indicate that the ground is good for this sort of construction. This monorail will affect 200 meters of land and trees within Mirador Norte Park. Diandino Pena, explained that Hermanas Mirabal Avenue in Villa Mella will serve as a model plan to prove that all transport systems - modern and traditional - can coexist there. The project consists of an integrated transport system which will include public cars, minibuses, conventional buses, electric buses and electric trains which will begin within two or three months. Pena believes that the country's transport system cannot continue depending on "publicos" and buses. The current transport system has been controlled by unions for 40 years. He named the main union leaders as Juan Hubieres, Antonio Marte, Antonio Perez and Ramon Perez Figuereo. Pena stated that financing for the mega-project is guaranteed but did not disclose precise details.
The Central Bank has increased interest rates of all CDs sold directly, after restating its perception that there are no monetary, fiscal or structural causes for the recent devaluation of the Dominican peso, according to Diario Libre. Monetary authorities expect to control the foreign exchange rate's upward trend against the local currency. The Central Bank said the inflationary pressures of the last months are due to two basic reasons: the increase of oil prices on the international market and a more dynamic economy. It points out as a positive factor that the oil bill is being financed through a credit line at Banco de Reservas.
Listin Diario reports that one-year paper which was earning 16% in interest since the beginning of July will now receive 17%, whereas 18-month paper will now earn 19% compared to the previous rate of 17%. The Central Bank decided to raise the two-year paper by three points as a means of fostering longer-term deposits, and increased their rate from 18% to 21% - a 16.7% variation. The 30-day paper rate decreased from 13% to 12% whereas the 90-day and 180-day paper rates remain the same.
Bear Stearns research analyst Franco Uccelli writes about the Central Bank's decision to increase interest rates paid on CDs sold to individual investors. These instruments will now pay rates ranging from 12% (for one-month paper) to 21% (for two-year paper), up from 9% to 18%, respectively. Uccelli originally believed the higher rates were prompted by an inability to roll over at prevailing rates massive amounts of CDs (US$1.1 billion worth) coming due this month. But official sources have stated that so far 98% of the CDs maturing in September and October have already been rolled over. The higher rates are motivated by the recent and abrupt depreciation of the Dominican peso - almost 5% during the past month and 11% during the past 60 days - and an effort by the Central Bank to keep local rates supportive of foreign exchange and market stability. The Central Bank warned potential speculators that the country is about to receive a sizeable influx of US dollars which officials believe will contribute to stabilizing the exchange rate. The government has already receive US$110 million worth of recent Inter-American Development Bank (IDB) and World Bank (WB) disbursements and is expecting over US$320 million in multilateral credits once the International Monetary Fund (IMF) Board signs the country's revised economic program on 17 October 2005. Uccelli believes that the near-term increase of inflow of dollars will ease the pressure on the exchange rate and halt the depreciation of the peso, which was considered a little overvalued by many Dominicans when it was trading at 29 peso-per-dollar. Uccelli states that he continues to view the DR's economic recovery as reasonable stable (albeit somewhat fragile), and the recent increase in rates may present more attractive entry points for investors interested in Dominican local instruments.
The US dollar exchange rate dropped by RD$1.10 yesterday on the foreign exchange market in contrast to Wednesday when it reached a maximum rate of RD$34.00 to one and minimum rate of RD$33.80 to one in the main commercial banks and exchange agents, according to Listin Diario. Yesterday, US currency was being sold at RD$32.90 to RD$33.00 and purchased at between RD$33.00 and RD$32.00. In the opinion of exchange agents, the market is on a downward trend and it seems the dollar will again reach the levels it had before, that is RD$31.00 for purchase and RD$32.00 for sale. On Wednesday, the Euro was being sold at RD$41.00 and yesterday at RD$39.00, a two-peso drop. The purchase price of the Euro dropped from RD$38.50 on Wednesday to RD$37.00 yesterday. Trade leaders Domingo Espinal Collado and Ivan Garcia separately agreed that the fluctuation in the foreign exchange rate was due to a "speculation bubble" and believe the US dollar should be priced between RD$29.00 and RD$31.50.
Banks have increased their profitability and are projecting greater absolute income during this year in comparison to 2004, as a result of the reduction in interest rates. Listin Diario reports that during the first semester of this year, consolidated profit of commercial banking operations without restriction increased RD$2.511 billion, compared to utilities of 2004 when consolidated profit reached RD$5.215 billion. The last quarter of the year is traditionally the best for the banking system as there is usually a greater demand for credit. Meanwhile, Banco Popular reported total assets of RD$84.723 billion at the end of September, a RD$4.134 billion increase compared to the end of 2004. The bank's total deposits reached RD$72.607 billion, a RD$2.889 billion increase compared to the end of 2004. The General Administrator of Banco de Reservas reported that after deducting provisions to cover risky assets, paying the corresponding income tax and having made reserves for payment of bonuses and premiums to its employees, the bank has accumulated a net profit of RD$1.451 billion, which represents a 27.5% increase compared to the whole of 2004, which was RD$1.138 billion. This profit is almost 67% more than the profit earned at the end of September 2004. Banreservas ended the third quarter of 2005 with total assets of RD$107.4 billion, a 32.4% increase compared to December 2004. Deposits increased by 31.6%.
The suspended Deputy Director of the Migration Department, Victor Soto, who was arrested on Wednesday for his alleged involvement in the passport fraud case, was released yesterday by Judge Roman Berroa Hiciano, who imposed traveling restrictions on him. Soto must also report to the Attorney General's department once a month. The judge made his decision two hours after hearing the defense and prosecution. The latter requested preventive custody stating that Soto had authorized the exit of a group of people with official passports obtained fraudulently acting as council members, even though there were express instructions not to allow their exit without the authorization of the Migration Department director. Soto, who spent the night at the jail in the District Attorney's department, was released at 5:00 pm. He stated that he understands the Justice Department is doing its job by investigating this case, and that they think he is guilty, but that they are absolutely wrong and that he has nothing to do with this or any other mafia. With tears in his eyes, he spoke of his background which includes clubs, politics, community work, religious affiliation and 26 years as a member of the PLD. Meanwhile, PLD Secretary General, Reinaldo Pared Perez, announced that Soto had been suspended from the party until investigations are complete. This measure complies with a resolution of the Political Committee that established that any PLD member involved in the passport fraud case would be suspended automatically. If they are convicted by a court, they will be expelled.
Civil State Registry official Luis Felipe Rodriguez was fired by the Central Electoral Board (JCE) for developing a program to provide late birth certificates free of charge to thousands of people under his jurisdiction who did not have the document, according to Clave Digital. The report states that JCE President Luis Arias Nunez said that Rodriguez had been fired for his lack of discipline. The funds collected by the registry - estimated at RD$300,000 per month - were used by Rodriguez to provide birth certificates to 4,000 people in 2004. Many other civil registry officials keep the funds generated by their offices. Another reason for his dismissal was that Rodriguez asked the JCE to establish salaries for officials so that they would not "monopolize" the funds collected which should go to the government or be used to repair the offices, which are in very poor condition. Arias Nunez emphasized that an investigation made by JCE inspectors determined that Rodriguez had told a pack of lies. "He claimed that my wife (Ana Melba Rosario, civil registry official of the sixth jurisdiction) earned RD$300,000 per month, which is not true," said Arias Nunez. He also said that the JCE judges were collecting commissions. He was given five days to present proof of his claims and did not reply, said Arias Nunez.
The US State Department Dominican Affairs Officer, David Searby, stated that the crisis in Haiti directly affects both the DR and the US, during a visit to the Governor of Santiago. El Caribe reports that Searby believes the situation in Haiti is "very delicate" for the celebration of elections next month. However, he hopes that Haiti will advance towards a solution to its crisis and that it will have the support of the DR to do that. Searby also stated that DR-CAFTA is not only an economic agreement, but also offers the opportunity to become associates and face common problems together. Searby visited Governor Jose Izquierdo together with the US Embassy's Political Affairs Officer, Bain Cowell. Also present was the president of PLD in Santiago, Julian Serrulle.
The United States Agency for International Development (USAID) is investing more than RD$4 million in a bio-digester project in Licey al Medio. According to Diario Libre, the equipment works using pig excrement for the production of biogas and organic fertilizer. Biogas is used for cooking and lighting, among other uses. Four bio-digesters have already been installed in the communities of La Reyna, Las Lomas and El Higuerito.
A group of Haitian refugees called the Committee of Refugees United for their Rights, have called on the United Nations to influence the Dominican government to end alleged violations of their rights. Diario Libre reports that the group's Vice President, Jean Ederme Blot, complained that children born in the DR do not have birth certificates simply because they are the children of Haitian refugees. Dominican authorities are also refusing to renew their refugee permits under allegations that their files have been lost. Blot warned that dozens of Haitians, mostly military and police, are willing to occupy other embassies seeking refuge as they felt unprotected in the DR.
The Dominican team has won the gold medal in the Modern Pentathlon Pan-American championship in Argentina, Diario Libre reports. Their trainer Marina Nikiforova classified their performance as "unprecedented" as they have only been training for four years and have already reached Pan-American level. The team is composed of Alex Hernandez, Julio Benjamin and Jose Aquino. Rear Admiral Hector Lizardo Jorge, who traveled with the delegation, stated that the team did a formidable job and deserves the congratulations of all Dominicans as they have "devoted themselves to the Pentathlon in body and soul".
The entire Washington Ballet company is coming to the Dominican Republic next week and will be performing Septime Webre's Carmen, George Balanchine's Serenade and Twyla Tharp's Nine Sinatra Songs at the National Theater on 21 and 22 October. Dominican audiences will be able to pay homage to prima ballerina Michelle Jimenez. Tickets can be purchased at the National Theater. For more events, see http://www.dr1.com/calendar
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved.