Last Wednesday Antonio Pantoja, the vice president of Union Fenosa International announced that the company is willing to reduce its interest rates, on a US$200 million loan to the distribution companies from the current 24 percent to 12 percent and then to 9 percent. The reduction in interest accrued would represent savings of US$42 million for the duration of the loan. The corporate headquarters of the company lent the money to their Dominican subsidiaries. Critics say the company lent itself the money at 24 percent at a time financing was available to the mother company from other sources at less than 5 percent. The move comes after the Dominican government criticized the inefficiency of the company.
