Issuance of NEW BONDS !!!

Macoris

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Apr 17, 2002
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Who is planning to purchase them ??? Not me !!!

ARTICLE:

More on the new bond issue

While both the Liberation Party (PLD) and the Reformist Party (PRSC) are officially opposed to the new bond issuance, President Mejia has stated that he will talk to both parties with an eye on convincing them to embrace the terms of the deal. On the other hand, the bonds have received the support of the American Chamber of Commerce in the Dominican Republic and that of the National Council of Private Eenterprise (CONEP), which has conditioned its position on the government committing to fiscal discipline.

Spokesmen from both organizations have come out in favor of the new placement, ?if it is wisely handled.? The Archbishop of Santo Domingo, Cardinal Lopez Rodriguez, has also stated that he approves of the sovereign bonds. He says they are a necessity for the government, but cautions that the money generated from the new issuance must be ?handled with absolute responsibility.?

The government is proposing to make a US$600-million placement this year. President of the Senate Andres Bautista told Diario Libre that US$135-million would be use to pay debt with Dominican commercial banks, US$215-million would go to the restructure the foreign debt, and US$150 - US$250-million would be used to increase the reserves of the Central Bank.

NOTE: I heard the the Government of DR is in default of payment of BONDS previously ISSUED. Therefore, CAVEAT EMPTOR !!!
 

jojocho

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Jul 10, 2002
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I read in the paper that several offers have been received already. Keep in mind that the DR has suddenly become one of the new darlings in Latin America for investors in the US and debt rating agencies have improved the country's rating in more than one ocassion, so they must be able to see something that I deffinetly can't!!
 

arturo

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Mar 14, 2002
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Bonds in general are seen as attractive hedge instruments against the grossly more volatile corporate share market. Most of us here know that the DR is in a financial class of its own. I have an idea for the graphics that should decorate the new bonds:

<font color=red><h2>A brand new white Mitsubishi Montero with blue registration tags ("license plates" in American?) and a big fat military general behind the wheel.</h></font>
 

Jim Hinsch

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Jan 1, 2002
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geocities.com
Isn't it true that those debts will ultimately be enforced, even if it means by force like when the USA took over the Dominican Customs so as to take the revenue?