I really need an explanation for this......

nickkieswetter

New member
Aug 6, 2003
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Hi Guys,

OK, In previous posts we might have already established that I am not by any means an economic guru, however somthing in the news today has me totaly bamboozled!

It is reported that the DR has made agreement with the IMF for the 1billion 2 year standby agreement (Which seems to be yet another loan) however in order for this to take place they have to make good on some loan payments that are already late! In order to do this they are looking to borrow 200 million from Morgan Stanley and 70 Million from the Dominican banking sector (I can only assume that this is the private sector and not BC)

Well, the thing is, with the economy doing as great as is frequently reported by Nals and the peso being the strongest currency on the planet earth right now why does the government need to do this? Moreover as an individual if you were looking to take a loan that required you making up defaulted payments on other loans (not that any sane company would lend you money under these circumstances) I doubt they would be happy with you going and securing another loan of 27 percent the value of the loan that they are giving you JUST TO MAKE A PAYMENT!!! And thirdly, just how far is this billion going to go? What about the 600 Million owed to the power companies? will this be paid imediately as well as any other unstructured debt that the government has? Finally, I cant remember the figure but I am sure someone was saying (probably Nals) that BC has great foreign reserves right now so why do they need the bridgeing loan in the first place??!!!

Reading this forum I see a lot of conjecture and debate without anyone 'in the know' like Nals and AZB with all his society contacts posting real answers. I can only conclude that there is a conspiracy to keep the lower classes like myself downtrodden and in the dark!

Nick

P.S. One thing that made me laugh was that it was reported recently that Leonel quiped to the striking Doctors who only make 11000 pesos a month that they `need to remeber this isn?t the United States` He did not however go on to tell them that they could buy more in the super market in Beverly Hills for their 11 grand right now than they can here!
 

Robert

Stay Frosty!
Jan 2, 1999
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nickkieswetter said:
Reading this forum I see a lot of conjecture and debate without anyone 'in the know' like Nals and AZB with all his society contacts posting real answers. I can only conclude that there is a conspiracy to keep the lower classes like myself downtrodden and in the dark!

You should have been at the Rocky's thanksgiving bash last night, you would have got an answer direct from the source.

We had a very interesting conversation with a very well known Leonel adviser (economist) on the US$ and what is going on with the economy right now.
 

liam1

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Jun 9, 2004
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robert, i guess you're talking about mr. frederic emam zade. would you mind sharing with the rest of us what he had to say about the ecomonic future of the country. i'm most interested in his take on exchange rates. thanks alot.
 
Me to Robert

I am very interested on his take on the falling US$ and what it will do to the Dominican Economy, it is hurting here in Canada, althoughnice to buy US$ at a cheaper rate.
Travel by US residents through Canada will drop off since the $ has gone from 1.54 to 1.18+/-. Economists here a saying par within the year??

Small business' in Canada that negotiated free trade agreements for products and service when the US$ was $1.54 Canadian are taking a 25% hit in their profit margins due to the falling US$, and things look bleak for some of them.

Last January the peso was approximately 50 to $1US now at the approximate 30 to rate shows a 40% decline. Have prices declined as well? If not then I see big troubles on the horizon.

Canadian to UD to Peso's
Approximate Calcuations early this year for a US$ I paid 1.50 CDN and then got 50 peso's a ratio of 33 peso's to 1 CDN$
Today that ratio 1US$ = 1.18 CDN for 30 peso's = a ratio of 25 peso's to $1 CDN, this shows a 25% decrease in the number of peso's I will receive.

Technically speaking our dollar gains strength I loss money when travelling.
 

mastersro

New member
Oct 9, 2004
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Share this with us

Robert said:
You should have been at the Rocky's thanksgiving bash last night, you would have got an answer direct from the source.

We had a very interesting conversation with a very well known Leonel adviser (economist) on the US$ and what is going on with the economy right now.

How about posting this info for us who were not there?
 

nickkieswetter

New member
Aug 6, 2003
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Sorry I wasnt there

Hi Robert,

Sorry that I wasnt at Rocky`s but if you or somebody who was would be kind enough to post at least a little of what was said it would be most appreciated.

Nick