Minister of Finance Fernando Alvarez Bogaert said that Salomon, Smith & Barney, Citibank Group Florida, S.P. Morgan, Merryl Lunch, Bear & Stears and Chase Bank investment banking firms have shown an interest in the sovereign bond issuing of the government, as reported in El Siglo. On the other hand, Minister Alvarez said that tax collections in February were down RD$300 million. He said that many businesses have boycotted the 1.5% monthly tax on gross sales effective this January. He attributed the decline in government income also to the slowdown of the economy as it adapts to the new tax measures. The economy moreover is cringing from the effect of restrictive monetary policy in place to maintain macroeconomic stability. This has resulted in about a 10-point raise in interest rates that has affected business.
