2003News

EU ambassador warns about indebtedness

European Union Ambassador Miguel Amado warned, when speaking during the opening of the II Forum of the Program to Support Small Business and in the presence of President Hip?lito Mej?a, that the country could not take on unlimited debt in the medium or long range because this translates into limits on credit and the transfer of assets to foreigners. As reported in Diario Libre, the representative of the European Union in the Dominican Republic said: ?Insufficient national savings to investments translates into an increase in foreign indebtedness and consequently an increase in the interests that need to be paid in the future to foreign capitals.? He said that the DR continues to be one of the least indebted Latin American countries, but the present increase in liabilities makes adjustments and restraints on government spending unavoidable. The Mej?a administration has taken on millions in dollar-loans with commercial banks under the guarantee of institutions such as Eximbank in the United States.