Celso Marranzini, president of the Consejo Nacional de la Empresa Privada, the leading business association, criticized the Central Bank authorities for letting interest rates climb in order to attract new capitals in an attempt to stabilize the peso. He said that this policy is affecting local production. He said that the Central Bank monetary policy should be coherent, brave and that conditions should be created that generate the growth of all sectors in a transparent and uniform way. He said that high interest rates are an impediment to companies investing, creating new jobs or keeping old ones and that the economy in general will suffer. He said it is not in the nation’s interest that interest rates go up in order to avoid a devaluation of the peso. He said that if the peso is not allowed to float, then we are less competitive in several sectors, and non-traditional exports will continue to suffer. Local banks that were paying 9.5%-12.5% interest on deposits, are now offering 18-20% interest rates. The prime rate has shifted from 18% to 25%, with non-prime rate loans going for 36%. Other sectors have attributed the decline of the peso to the overspending of the government. This situation will not improve, especially during this period of political campaigning, when the government has just disbursed RD$171 million to fund the political party campaigns.
