President Hipolito Mejia ordered his government to pay the interest on the 2013 coupon payment that is due on 27 August. During the government council meeting held last night at the Presidential Palace, Mejia authorized the payment of RD$1.2 billion, to be converted into US dollars to make up the amount due. Two checks dated 11 August, bearing amounts of RD$535 million and RD$677.1 million, were handed to Central Bank Governor Jose Lois Malkun and Finance Minister Rafael Calderon to effect the payment. Mejia said that in so doing, he has fulfilled the state?s responsibility to the international capital markets for the sovereign bonds that Mejia said were used to build ?important social works.?
Franco Uccelli of Bear Stearns reports today that he has received official confirmation from the Central Bank that the funds were transferred late last night and that the bank had been purchasing dollars in anticipation of making the coupon payment. Uccelli speculates ?that the dollars are in and the payment should be made this afternoon.?