DR1 Daily News - Dominican Republic

Central Bank governor Héctor Valdez Albizu opposes the legislative initiative that would amend Law No. 87-01 so that people could cash in on up to 30% of their savings in pension funds. Valdez Albizu said the action would have negative and perverse consequences on the most vulnerable sectors of society, and on economic stability and growth.

We are talking about returning RD$173 billion in cash to social security beneficiaries, he said in a statement on the Central Bank website. He said this would create a 64% increase in the amount of money in circulation. He said the excess demand for goods and services happening at a time there is a slowdown in production would cause high levels of inflation that would reduce people’s purchasing power, deteriorate the value of their income and savings and increase poverty levels.

“As a nation, we would be helping to turn a temporary health crisis...