Former President Leonel Fernandez comments today in an article in the Listin Diario that the justifications for the issuing of US$500 million in sovereign bonds are no longer there. He refers to the arguments that the bonds would increase Central Bank reserves, force interest rates down and control inflation, all matters that have been accomplished. He also points to the announced outlook for US$400 million in savings due to a decline in petroleum prices. Furthermore, he says the government has announced its revenues are up 23% and that it appears the government will keep the 5% exchange commission (the government had promised to remove this as soon as petroleum prices were adjusted). Furthermore, he says that the announcement by the Office for the Promotion of Foreign Investment of US$1,300 million in new investments this year, and another US$700 million in loans from multilateral organizations, lead to the conclusion that the sovereign bonds are no longer justified.
