The Listin Diario reports that US$896 million has been deposited overseas over the first six months of 2003. According to reporter Hector Linares, the Central Bank is pointing to the capital flight that occurred due to the instability of the exchange rate and the depreciation of the peso. The Listin recently reported that according to the International Bank of Payments in Switzerland, Dominicans had deposited US$1.2 billion abroad during 2002, calling it an extraordinary increase over 2001.
The Central Bank statement also says that the increase in overseas deposits is a reflection of the crisis caused by the bankruptcy of the Banco Intercontinental (Baninter). As possible causes for the outflow of money, the Central Bank cited a 9% reduction in foreign investments, as well as a slowdown in several projects to be financed with external resources.
In another report on the same subject, Victor Grimaldi, writing for the Listin Diario on Sunday, said that the International Bank of Payments is reporting that until March of 2003, there was US$4.05 billion worth of overseas deposits. At the same time, direct deposits in overseas banks from the non-banking private sector increased from US$664 million to US$1.15 billion in the first three months of 2003. This represents a US$483-million increase from the private, non-banking sector during the first trimester. According to Grimaldi, during the latter part of 2002, when the problems of Baninter were merely rumored, overseas accounts received US$393 million in the third quarter and US$450 million in the fourth. As the banking crisis became public knowledge, the first three months of 2003 saw a sharp increase. This information is buried on Page 18 of the Central Bank report and is presented without the usual graphs. While an earlier report from the Central Bank described a US$464-million surplus in cash flow, the numbers are in sharp contrast with the figures released by the Swiss banking institution.
On the campaign trail, former President Leonel Fernandez attributed the capital flight to the fear Dominicans have in the economic policy implemented by the Mejia government. He forecast that the capitals would return once the PLD regains power in 2004. Speaking in Higuey, La Altagracia province, Fernandez said there is a general distrust in the actions of the government.