The Executive Branch observed the Monetary and Financial Code passed by the National Congress. The Executive Branch said that the changes made by the National Congress to the original bill are inconsistent or ambiguous, while others are anachronic. The local daily press publishes today the extensive letter President Leonel Fernández sends to Chamber of Deputies president Rafaela Alburquerque. In the letter, the President lists several items that violate what he considers is the spirit of the original code that was sent to Congress five years ago as part of an integral financial reform program that is being implemented. The President says that the Code passed by Congress does not fulfill the objective of setting the base for a modern, transparent, competitive and efficient financial system. The Code, as passed by Congress, had the strong support of the Association of Commercial Banks of the Dominican Republic (ABCRD). It was, nevertheless criticized by Asiex, the Association of Foreign Investment companies, which stated that certain items discouraged the advent of foreign banks. Other leading business organizations, such as the National Council of Private Business (CONEP), which is the nation’s largest business group, the National Union of Businessmen (UNE), and the Dominican Association of Free Zones (ADOZONA) strongly opposed its conversion into law. The congressmen need now to study the observations made by the Executive Branch. The business of banking in the DR is extremely profitable. The advent of foreign banks is expected to reduce the present profit margins. At present, large businesses have access to lower-interest international banking loans, but small businesses and individuals have to pay high interest rates of upwards of 26%. Local banks fear the advent of international banking that would operate with much lower overhead than banks located today in the DR have, and thus would be able to lend money at much lower rates.
