The Senate yesterday unanimously approved in second reading the bill which allow the Government to issue debt bonds to cover RD$5 billion of its internal (i.e., domestic) debt, but not before making two important amendments. The bill now goes to the Chamber of Deputies. One amendment, offered by Finance Committee Chairman Dar?o G?mez (PRD-Santiago Rodr?guez), specifies that the bonds will cover debt owed to suppliers and contractors up until 1998, whereas the original bill only covered debt through 1996. A second amendment earmarks at least RD$337 million of the debt repayment to sugar plantation owners. RD$500 million of the debt repayment is already earmarked to pay off account holders who lost money during the fall of several banks at the end of the 1980’s (individual account holders cannot get more than RD$100,000, no matter how much was in their account when the bank went under), while RD$2 billion is earmarked for public works contractors, RD$1.663 billion to owners of property taken by the government, and RD$500 million for suppliers of goods and services to the State. Under the bill, six-year bonds would be issued in denominations of RD$5,000. The bonds would offer 6% annual interest, paid quarterly.
