Economy, Planning and Development Minister Temistocles Montas, interviewed at the Presidential Palace yesterday, Wednesday 5 December, announced that the Dominican Republic will sell bonds abroad next year to finance a US$1.5 billion budget gap as growth in the economy slows.
He said that the bond sale would be used to finance part of the nation’s budget deficit, forecast to fall to about 2.7% of GDP next year from 8.5% this year, assisted in part by the new tax law.
Dollar bonds sold by the Dominican Republic have returned 21% this year, the most among 15 countries tracked by JPMorgan Chase and Company’s CACI index compared to Latin American bonds, which have returned 14.6 percent over the same period.
According to Business Week, the Dominican Republic’s US$57 billion economy is forecast to expand 3.8% this year, down from 4.5% last year and 7.8% in 2010. Montas said, however that growth would slow to 3% next year.
www.businessweek.com/news/2012-12-05/dominican-republic-plans-13-bond-sale-to-finance-deficit
www.diariolibre.com/noticias/2012/12/06/i362757_vendera-us1-500mm-bonos-2013-para-financiar-presupuesto.html