At the meeting held yesterday at the National Palace, President Leonel Fernández approved the settlement plan presented by officials of the Banco de Reservas (Banreservas) and the Commission for the Reform of Public Enterprise (CREP) in regards to the tremendous debt owed Banreservas by state firms headed for capitalization. The Dominican Electricity Corporation (CDE), State Sugar Council (CEA), Molinos Dominicanos and the Dominican Corporation of State Enterprises (CORDE) all owe significant sums to Banreservas. Molinos, for example, alone owes RD$355 million. Among other things, it was decided to transfer ownership of the state-owned insurance company, Compañía de Seguros San Rafael, to Banreservas. Banreservas will also gain title to some lands currently owned by CEA and will be given blocks of stock in several of the firms that emerge from the capitalization process. Some of the debt, however, will simply be transferred to the new firms for them to service. In the case of Molinos, for example, the new "Molinos de Ozama" will carry RD$125 million of the debt "Molinos Dominicanos" currently has with Banreservas.
