Finance Minister Vicente Bengoa told reporters that the congressional roadblock that was stalling the approval of the 2006 budget plan was hurting everyone, including the legislature. Bengoa also said that the stalling could also bring problems for the Dominican Republic in its dealings with the International Monetary Fund, because the Letter of Intentions stipulates that the President will no longer be able to use budget surpluses at his discretion. The minister also told reporters that the President would have difficulties fulfilling his social and development plans as well as securing the money to meet international payments that are pegged at RD$61 billion.
Bengoa also pointed out that the Dominican Republic could fall into “technical default” if the renegotiation of the debt with the Paris Club is not approved by the Congress. The renegotiated contracts have been approved by the Senate, and the different creditors are waiting for their payments.
Bengoa said that it was not a question of whether the government had the money or not, but rather it was a question of constitutionality. The Congress must give its approval.