Yesterday, the government began the process of placing US$300 million worth of bonds on the financial markets during a meeting at the Central Bank, with the participation of representatives from investment banks and other investors from the US and Europe, as reported in Hoy Newspaper. Presidential Technical Minister Juan Temistocles Montas said that the purpose of these bonds is to pay off money that is owed to Spanish firm Union Fenosa for the repurchase of EdeNorte and EdeSur during the Hipolito Mejia administration. Montas announced that the DR was able to renegotiate a US$600 million debt with Union Fenosa last November, reducing it to its real market value of US$300 million. According the minister, the timing is perfect for the DR to place these bonds and it is expected that they can be placed with interest rates lower than 9%, which is the rate paid by sovereign bonds issued in 2001 and 2003 by the previous administration. This is due to the lower risk factor of Dominican sovereign bonds on the international financial markets. The Dominican government has hired the services of J.P. Morgan and Morgan Stanley investment banks for the release of these bonds, said Montas.