In a press conference held yesterday, the National Council of Business (CONEP) pushed for the government to put the adjustments needed to restore confidence of the leading economic factors of the country ahead of politics. Among the most salient points is the reduction of public spending, as agreed to with the International Monetary Fund (IMF). The business community expects there will be pressures on public finances because of increased debt, both domestic and external, which, along with the start-up of the new social security system, will place additional strain on public expenditures.
CONEP pointed out that the most important change required by the IMF is the implementation of a policy of austerity with regard to public finances. CONEP says, however, that this ?was avoided by taking on new foreign debts, which resulted in more debt, sparse growth and macroeconomic imbalance.?
CONEP further questioned how the burden of the new IMF accords would be shared, saying: ?The 2% tax on imports will act directly to contract imports and reduce the demand for dollars.?
Only full compliance with the IMF will restore confidence among the principal economic agents, according to the CONEP representatives. While noting that the entire Dominican population is now paying the price for the Baninter failure and other ill-conceived policies, CONEP is holding out hope for the future as the country undergoes an economic adjustment via foreign commerce and a considerable increase in exports. Due to the new exchange rates, domestic production is receiving a sales boost as goods made here are now less costly than foreign imports.