Economists Eduardo Tejera and Pedro Silverio talked to Mario M?ndez, the economic editor of Hoy, to warn that the new emission of RD$10 billion in Central Bank certificates creates a drastic change in the monetary and fiscal picture that was presented in the letter of intention to the International Monetary Fund (IMF) and that new emissions of currency ? or even new taxes ? may be required to cover the financial costs.
Eduardo Tejero said that he was ?astonished and surprised? by the fact that only three weeks after presenting the letter of intention to the IMF the Monetary Board would take such steps. He felt that ?there might be something hidden behind this.?
For Silverio, the only explanation for such a move on the part of the Central Bank was that the agreements with the IMF had potentially broken down.
Both economists agreed that the certificates would certainly have negative effects on commercial bank loans that will become more costly. Tejera pointed out that if the new 2% tax on imports, the 0.15% tax on most checks and the US$10 increase on the departure tax were effected to pay the financial costs of prior emissions, they would be, in effect, ?neutralized? by the new emission, which will require some new taxes to pay the estimated RD$3.4 billion financial cost.