Diario Libre reports that the 2014 National Budget authorized the government to take on loans for specific projects for US$3.37 billion and EUR7 million. These loans were to be made with international commercial banking for terms of a minimum of seven years and market interest rate.
Diario Libre reports that the total approved in the budget does that include the issuing of global bonds that Congress authorized for US$1.5 billion in the 2014 National Budget.
In the financial analysis, Diario Libre reports that as of May, the government had already placed bonds for the authorized amount at 30 years and an interest rate of 7.45% and 7.5%.
According to the report, the amount does not include the authorization so that the Ministry of Hacienda issue bonds for the domestic market and take on debt with the local banks for RD$33.6 billion.
The newspaper reports that overall the PLD-majority legislators have approved new debt for US$6 billion. PLD senators have defended the borrowing of RD$202.64 billion in bonds from 27 February to 26 July 2014.
Senator Rafael Calderon said that the funds were being used for social programs, including housing, aqueduct construction and education.
Writing in Diario Libre today, Tuesday 29 July 2014, economist Eduardo Garcia Michel says that the quasi fiscal debt has also been increasing. In June 2004 it accounted for a RD$82.78 billion debt, but by June 2014 this had grown to RD$330.98 billion.
http://www.diariolibre.com/opinion/2014/07/29/i722141_naturaleza-del-problema-cuasi-fiscal.html
http://www.elnuevodiario.com.do/app/article.aspx?id=384578
http://www.diariolibre.com/economia/2014/07/29/i722061_congreso-autoriz-concertar-nueva-deuda-por-us6-000-millones.html