PRSC presidential candidate Eduardo Estrella criticized the Central Bank’s issuance of new savings certificates at record-breaking market rates. In an interview with Hoy newspaper, the former Santiago senator said that the certificates, which are being promoted by the Central Bank as an instrument to reduce money in circulation and strengthen the peso, serve to diminish the confidence productive sectors have in the country. “They are a time bomb. The practice must stop because it reduces confidence. As the Central Bank offers higher interest rates, people will doubt whether the payments will really be made,” he said.
Last week, the CB auctioned savings certificates at an annual interest rate of 50%.
During the interview, Estrella also referred to the IMF agreement, saying it could be revised if he were to win the Presidency. “The IMF does not demand any measure, per se, only that the government exercise fiscal discipline. Since the government did not want to reduce its payroll spending, it chose other alternatives such as new taxes on imports,” he said. In his opinion, this choice was a mistake because the new taxes have contributed to a decline in government revenues, as Dominicans can no longer afford to buy new cars or appliances.
Estrella believes that if the public payroll is reduced by even 3%, the government would have savings of RD$900 million which could be invested in small- and medium-sized businesses to stimulate production.
In the interview, Estrella said he would eliminate the 5% tax on exports also recently instated by the government.
His approach would also include promoting the investment of Dominicans living abroad. “Many Dominican expatriates living in the United States would like to do business in the DR, but we have to eliminate the red tape and create a law with incentives to make this a reality.
He considered the Free Trade Agreement with the United States to be a positive move, but one that should be negotiated wisely so as not to affect local producers. “Besides the FTA, if we do not create the conditions so that our products can compete, we have achieved nothing. We have to reduce taxes and red tape,” he asserted.
According to Estrella, his government would also renegotiate the foreign debt to adapt it to better suit the country.
On a political note, Estrella feels the convening of the Council of the Magistracy to change the Supreme Court justices would be untimely. He said the priority should be to hold free and transparent election.
He said he would participate in a televised debate with the PRD and PLD contenders.