President Hipolito Mejia said on Friday that banks in the DR are offering to issue bonds for RD$3 billion at an interest rate less than 10%. He said this would be less than the cost of the sovereign bonds. ?There are many things that cost less (than the sovereign bonds), but the country has to open itself to the institutional capital markets,? he said. ?We open the doors and then it is up to the private sector; that is vital for the country,? he said. He explained how important it is for the country to gain credibility with the risk evaluating companies as a good destination for capital investments. He said his government is receiving innumerable funding offers from national and foreign banks. He commented on an Italian financing offer to resolve the Ozama Bank problems, but says he is giving it lots of thought because it would increase the indebtedness of the country. ?I also am afraid of foreign credit; I have to be cautious,? he said.
