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!
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!