Dominican President Leonel Fernandez and his US counterpart George W. Bush have agreed to expedite the process for the Dominican Republic - Central American Free Trade Agreement (DR-CAFTA) to come into effect and urged the disbursement of more than US$250 million from multi-lateral organizations to contribute to maintain trust, sustainability and the economic growth of the Dominican Republic. Bush was quoted as saying that "it is beneficial to the United States that the Dominican Republic have a strong economy, and I've assured the President [Fernandez] that we'll get the free trade agreement moving as soon as possible". These funds include the disbursement of US$150 million from the World Bank to support the electricity sector and another US$100 million from the Inter-American Development Bank. The Presidents met in the Oval Office at the White House yesterday. The meeting lasted one hour and ten minutes, according to Diario Libre. During their meeting the two heads of state also discussed other major issues including drug trafficking and security. Bush congratulated Fernandez for the economic growth the DR has achieved during the past months and for the personal leadership he has developed in the region, commenting that he was "proud to be with a strong leader of the region who is committed with the processes of reform, stability, and prosperity."
Fernandez arrived at the White House with Foreign Relations Minister Carlos Morales Troncoso, Central Bank Governor Hector Valdez Albizu, Presidential Minister Danilo Medina, Finance Minister Vicente Bengoa, Technical Presidential Minister Temistocles Montas and Administrative Presidential Minister Luis Manuel Bonetti. After the meeting, Fernandez stated that the precise date for the commencement of the DR-CAFTA could not yet be established but it would take place as soon as possible because the bills that were pending approval have already been submitted to Congress.
Although President George W. Bush seems bent on implementing the new passport requirements for US citizens traveling to the Caribbean, President Leonel Fernandez could not help but bring up the issue that has led to widespread concern across the Dominican tourism industry, in what can be called a defense of an important national sector. President Fernandez expressed these concerns to Bush during their hour-long meeting at the White House yesterday, and discussed the effects the new passport law would have on Dominican tourism, but President Bush, who according to Fernandez seemed willing to continue the dialogue, explained that it was a law aimed at protecting US security. Today Fernandez will meet for a conference at the Center for International and Strategic Studies, and will also attend a luncheon with executives from the National Geographic Society, and finally will meet with members of the World Bank. He travels back to the Dominican Republic tomorrow morning.
President Leonel Fernandez has made it clear that as of yet the DR has not been formally approached as a possible consensus candidate for the United Nations Security Council. After a 35-round bout between Venezuela and Guatemala, no clear-cut winner has been decided for the non-permanent seat on the Security Council, to replace Argentina. Fernandez said that he would wait and see how the situation develops, and refrained from saying whether the Dominican Republic would be supporting the current compromise candidate, Bolivia.
The Central Bank has sued former banker and President of the Board of Director of the collapsed Banco Intercontinental (Baninter), Ramon Baez Figueroa, for RD$50 billion in damages while the hearings of the case against him and four other defendants were postponed until 14 November. The basis for the suit is the allegation that information was withheld from the Banking Superintendence. Baez is also being held responsible for hiding RD$16 billion in overdrafts and loans that did not show up on the bank's official accounting systems. Marcos Baez Cocco is being held jointly responsible for the total damages claimed by the Central Bank, according to a report by Diario Libre.
The Dominican Republic Industrial Association (AIRD) and the National Association of Young Entrepreneurs (ANJE) have been angered by the proposed tax reform announced yesterday by Technical Secretary to the President Temistocles Montas, and are proposing that the government analyze the destination of its expenditures to make the administration of resources it receives more efficient. Diario Libre reports that AIRD president Yandra Portela Vila and Eduardo Valcarcel, president of ANJE, are in agreement that the government must implement an austerity plan to reduce expenditure before embarking on a new tax reform. Excessive subsidies must be eliminated and the austerity plan announced at the beginning of the administration must be put into effect, said the business leaders. Industries need to improve their competitiveness conditions for free trade, and that is affected by the creation or increase of taxes.
The stir comes after it was announced yesterday, from Washington, that the government would introduce a tax reform in the next few weeks, and push it through Congress so that it can be included in the 2007 budget. Montas defended the possible reform by saying that it would bring the DR in line with the stipulations of the IMF Stand-by agreement, and would enable it to deal with the "profound" changes that will be brought on by the implementation of DR-CAFTA. Montas also pointed out that President Leonel Fernandez told IMF Chairman Rodrigo Rato that because last year's Congress did not ratify the government's tax reform proposals as they were presented, there was a RD$7 billion reduction in tax collection, and this was going to have to be "rectified." The proposed tax reform is likely to include increases in ITBIS (VAT) on items like coffee, sugar, cooking oil and fuel. Also there is to be a change and increase in the selective tax on alcoholic beverages and cigarettes, and a tax on personal savings. Finance Minister Vicente Bengoa said that he is leaning towards raising ITBIS. The way the reform will be carried out has yet to be decided.
Strong rains only worsened the situation for many Dominican citizens last night when they were surprised by a power outage, caused by the breakdown of a 138,000-volt power transmission line. The breakdown happened at the Palamara substation and caused a stoppage of service throughout most of the country, worsening the already deteriorating energy supply deficit caused by the exit of five energy generators that produce 400 MW of power. The breakdown occurred at 6:00pm yesterday evening and affected 90% of EdeSur subscribers. EdeSur is informing that the deficit in the energy sector the company has led it to change the power-rationing schedule, in which they alternate the sectors that are blacked out. In areas where the service was being interrupted in a regular schedule, the electric service failed in the early morning and continued until the night. Listin Diario received calls from residents in different areas reporting outages more than 10 hours long, mainly in the metropolitan area. Also affected were provinces in the southern region such as San Cristobal, Azua, San Juan, San Jose de Ocoa and Peravia. Superintendent of Electricity Francisco Mendez informed that the interruptions that are affecting the capital city and Santo Domingo Province are due to voltage problems and that the Itabo II generators are being tested while Itabo I has just re-entered the system. Because of this, an improvement in supply is expected today.
Diario Libre is reporting that in the last 10 months alone 786 Dominicans have been repatriated after arriving at Spanish airports with forged documentation. This has angered Spanish officials. The newspaper reports that the fake documents are obtained at "clandestine consulates," as they put it, and are operated by a "mafia" that charges between EUR4,000 and 7,000 for a legitimate trip to the European nation. Spanish consulate official Antonio Bausa said that they have increased the daily number of visa interviews to 170, but that this still isn't enough. He says that officials try to weed out those who are part of the mafia, but doesn't understand how people can be taken in by them. Because of this, the Spanish embassy in Santo Domingo is beginning to require DNA tests to prove family connections for people seeking visas through a family member already in Spain, and that the Spanish government is going to change the reunification laws in order to curb illegal immigration.
Since the opening of the Dr. Juan Bosch Trauma and Surgical Hospital on the Duarte Highway near La Vega, 492 patients have been admitted with some type of serious injury, and none have died. The report, which came out in Diario Libre, explains that this is due to the proximity of the hospital to a major transit point, the fast action of medical staff, and the fact that accident patients don't need to be moved more than 125 kilometers to a hospital in Santo Domingo in order to receive treatment. This was the way it was done before the Bosch hospital opened, when trauma patients on the Duarte highway had to be rushed to Santo Domingo, losing precious time and increasing the chances of fatalities.
Listin Diario is reporting that the Office of Environment and Natural Resources and the Sub-Secretary for Environmental Management have closed two plants in Haina as a result of environmental concerns. The battery companies Meteoro and Metalosa SA have been closed because they were found to be emitting toxic refuse and lead, which was harming the surrounding area. District Attorney William Lara said that apart from closing the plants he would be prosecuting the owners for the damage they have caused to the community.
El Caribe reports that the situation at the UASD University has returned to normal after a two-day strike, and officials have announced that professors and employees will meet on Monday to discuss options for a resolution to the problem. Professors' Union (Faprouasd) president Hector Sanchez said that the organization would continue the dialogue and hopes that Dean Roberto Reyna would meet with them to discuss the issue. Reyna said he was open to the conversation. The strike began after teachers opposed the choice of ARS Humano as the staff health insurance provider, and were angered that there had been no bidding for the contract.
Listin Diario has published a list of the best schools in the nation, and a small rural school in La Vega, Cruce de Barranca, was ranked as the top school for middle level education, with an average score of 78.54 in the national entrance exams. The Secretary of Education chose 35 schools that had the best scores on the tests for 2006. The results place the school among the 10 best education centers, public and private, in the entire Dominican Republic.
The chairman of the Department of Finance is to meet with the permanent commission from the Chamber of Deputies to discuss imposing a limit on the level of interest rates that banks can charge on credit cards. Ervin Novas Bello, head of the Finance Department at the Central Bank, is quoted in Diario Libre as saying that they would try to establish a ceiling for the interest rates because these are too high at present, and are not beneficial for clients. He described this initiative as a defense of consumer rights. He did point out that any limit to the interest rate would call for a reform to the monetary laws, which allow for "freedom of the market." The proposal could bring rates, which are currently at between 36 and 37%, down to between 20 and 25%.
Tourism Minister Felix Jimenez has announced that as from November the Central American Transport Company (TACA) will fly directly from Costa Rica to the Dominican Republic, increasing the number of Central American tourists to the country by 50,000. Jimenez says that there is a great demand from Argentinean, Brazilian and other tourists wanting to visit the DR. According to Jimenez, who was quoted in Diario Libre, the county has spent US$20 million on promoting the country overseas.
According to Diario Libre, government officials have said that the Feedback Company, which handles the fees charged to European tourists on their arrival to the country, are overcharging by making them pay the entrance fee in Euros and then reporting that they charged the tourist in dollars. The entrance fee into the country is a US$10.00 charge. Feedback has made no comment on the allegations. Europeans represent 41.9% of total tourist arrivals in the DR, according to the Central Bank.
Diario Libre is reporting that Dominican-born Karina Pasian will be the only Latin American musician to perform in a concert to mark the closure of the United Nations General Assembly World Youth Congress on 29 October. Representatives from all UN member nations will be present. Pasian will be joined by world famous singers Youssou N'dour, Cheb Khaled and Ivone Chaka Chaka. The concert will be dedicated to the fight against Malaria in Africa. For more information on the event, go to www.rollbackmalaria.org/unitedagainstmalaria
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