Archive News

During a speech to celebrate the Central Bank's 62 anniversary, the Bank's governor Hector Valdez Albizu said that the Dominican economy would end the year with some growth despite the sober international scene. He also pointed out that in order to achieve sustained economic development the problems in the energy sector needed to be resolved. He said that the US$990 million that the country is due to receive as a result of the agreement with the International Monetary Fund would lead to macro-economic stability and improve the country's image with potential investors.
Valdez Albizu said that the Stand-by arrangement with the IMF would provide for the continuing process of Recapitalization of the Central Bank, easing the process of stabilizing long-term monetary policy. He said that he would ask Congress to extend the timeframe for the recapitalization from 10 years to 15 years. The governor predicted that inflationary pressure would remain under control, and that there would be no changes in the exchange rate, monetary policy or financial policies designed to stimulate investment. Among the more interesting details that were revealed was that remittances had fallen by just 2.2% and tourism had decreased by only 5.8%.

26 October 2009 - DR1 Daily News

Dominican Telecommunications Institute (Indotel) president Jose Rafael Vargas has welcomed what he described as "a great step forward" for Tricom. The Dominican telecommunications group received approval for its Financial Restructuring Plan from the Chapter 11 court in New York City yesterday.
Vargas said that, "with the ratification of the plan, Tricom sets a very positive precedent that will be reflected by strengthening the nation's telecommunications". After the approval of the restructuring plan in the US, Tricom now needs to carry out several corporate steps in the Dominican Republic that will allow it to finally implement the restructuring, including approval from Indotel for the transfer of the control of the company to the new shareholders.
Vargas urged the new shareholders to make the investments needed in order for the company as soon as possible, to achieve an increase in its competitive levels and so that users of its telecommunications services may benefit from new technologies and better prices.

23 October 2009 - DR1 Daily News

The government has made more than RD$13 billion worth of cutbacks in state spending, except in Health and Education, especially in the areas of goods and services as well as some internal financing that was obtained and was within the budget. The adjustments were made in response to the RD$21 billion shortfall in income so far this year.
Minister of Hacienda Vicente Bengoa and Budget Director Luis Hernandez made this announcement, and went on to report that the Board of Directors of the International Monetary Fund (IMF) would meet on 6 November to review the Letter of Intent from the Dominican Government.
Bengoa said that the US$1.7 billion that the Dominican government will get from the International Monetary Fund is the same funding that was assigned in this year's Budget, but because of the problems that have arisen it had not been possible to disburse it.
The government does not have an allocation for a wage increase for doctors in next year's budget, which will be presented on 15 November, according to the law, due to the fact that there was no agreement for a salary adjustment with this sector, announced Bengoa. He said that the government has paid internal and foreign debts on time since 2008 and said that the 2010 budget would be similar to this year's, with some slight increases, which is normal. He also reported that the US$300 million of the US$500 million loan that was approved by the Inter-American Development Bank for the support of the budget segment designed to help the poor, will be disbursed this year and the other US$200 million in 2010. Part of these resources will be used to for focused subsidies.
He said that the government would include 400,000 people in the National Health Insurance (Senasa) and 280,000 in the Comer es primero (Eating Comes First) programs, and would focus on the Bonoluz and the Bonogas programs, since the money is for this purpose. Hernandez said that they were working on the first phase of the 2010 Budget and were about half way through. He said that the institutions had to submit their budgets by 28 October. Bengoa said that the 2010 Budget would be sent to Congress within the timeframe established by the Constitution, adding that this means that the deadline is next 15 November. For more details on the IDB loan, see:
www.iadb.org/news/detail.cfm?language=English...

23 October 2009 - DR1 Daily News

Krispy Kreme, the popular American doughnut chain, is coming to the Dominican Republic, for all to enjoy. The brand, which gained its fame for their hot-out-of-the-oven glazed doughnut, will open 14 stores throughout the DR within five years. The announcement of the doughnut chain is a sign of the growing local purchasing power and the acceptance of foreign brands in market. Krispy Kreme will join the likes of Papa Johns, Quiznos, Wendy's, McDonald's, Kentucky Fried Chicken and Burger King as the major international food chains in the DR.
http://finance.yahoo.com/news/...

22 October 2009 - DR1 Daily News

According to the Minister of Economy, Planning and Development, Temistocles Montas, non-petroleum imports from the US fell by 23% in August and DR exports to the US have fallen by 18% during the same period. Montas said that the international financial crisis is affecting female workers the hardest. Montas made these statements during a seminar "Analysis of the global financial crisis from a gender perspective: Its impact on women" organized by the Ministry of Women, the United Nations Development Program (UNDP) and the International Labor Organization (ILO)
Montas added that the DR has a high level of poverty, with 35% of the population living below the poverty line.

22 October 2009 - DR1 Daily News

According to Listin Diario, trade between Chile and the DR has doubled in the last three years and it is expected that this could increase even further in January 2010 once a memorandum of understanding is signed between both countries. According to Manuel Hinojosa, Chilean Ambassador to the DR, rum, cigars and coffee are among the main exports that Chile receives from the DR. Although exports towards Chile are increasing the trade values remain at a deficit for the DR. In 2008 the DR imported US$60.3 million in goods while the DR only exported US$14.9 million to Chile. The trend is for this to increase: in 2006 the DR exported US$4.6 million, in 2007 US$8.2 million and in 2008US$14.9 million. During the first 6 months of the year exports to Chile registered US$8.6 million and are expected to jump 25% by the end of the year. It is interesting to note that Chile is the second largest Latin American investor in the DR after Mexico. But even the discrepancies there are large, as Mexico has invested US$1.25 billion in the DR, while Chile has only invested US$174 million.

22 October 2009 - DR1 Daily News

Sugar, tobacco and products that aid in blood transfusions lead the list of the DR's most exported products during the first seven months of 2010. Hand-made cigar exports grew by 0.94%, going from US$124.2 million to US$131.8 million. Products for blood transfusions grew by 3.21% going from US$233 million to US$258.9 million, with the product being exported mainly to the US, Puerto Rico, Holland, China, Venezuela, Germany, India, South Korea, Singapore, France, Colombia, Canada, Thailand and the Central African Republic. The 31 most exported products by the DR generated US$1.1 billion in revenue, for a 30.6% increase from the same period in 2008. Exports of these 31 products during the first seven months of 2008 totaled US$805.9 million. Other high-volume exports included cacao, disposable bed sheets, medical supplies, fresh bananas and beer.

21 October 2009 - DR1 Daily News

The president of the Dominican Association of Free Zones (ADOZONA), Fernando Capellan, has revealed that exports from the nation's industrial free zones continue to decrease with the resulting loss of 8,000 jobs. He said that in the first half of the year exports were off by 22%, going from US$2.208 billion in the first half of 2008 to US$1.724 billion for the same period this year, a decrease of US$483.9 million. Capellan said that it was not just textile exports that were down. Electronics were 50% less and jewelry was 59% less in the first half.
As reported in El Caribe, even tobacco, a Dominican tradition for more than 300 years, was down 8%, shoes 12% and "other products" down 21%. Perhaps ironically medicines and pharmaceutical products were up.
The Adozona leader and his executive vice-president, Jose Manuel Torres, told reporters that on 30 October the association would hold a seminar called "Inteport: towards an export mindset". The event will feature Miami Herald columnist and bestselling author Andres Oppenheimer.

16 October 2009 - DR1 Daily News

The Ministry of Hacienda will submit a bill to Congress for the modification of the 2009 budget, including an extra US$137 million for paying the government's US$566 million debt to the energy generators. Minister of Hacienda Vicente Bengoa said that the World Bank and the Inter-American Development Bank are in the process of auditing the State-owned Electricity Companies (CDEEE) in order to determine how much they really owe the generators. He added that once the actual debt amount is confirmed the government would figure out how to pay it, once and for all. He also informed that during the current administration US$4 billion has been paid towards the debt, with no results. Bengoa said this was a tragedy.

14 October 2009 - DR1 Daily News

The gravy train made another stop at Congress yesterday, as legislators approved a series of loans in dollars and euros totaling US$82.3 million. The funds will be used for government and public works projects. One of the loans is worth US$48,743,918, and will be used for the Corredor Duarte highway project being built in Santo Domingo. A further US$20 million will be spent on road repairs. Finally, RD$9.2 million will be used to expand the Plan Sierra reforestation program.

14 October 2009 - DR1 Daily News