Hector Valdez Albizu, Central Bank governor during the last eight years of the Leonel Fernandez administration and who continues in the post in the Medina administration refuted the former President’s statements made on Tuesday, 13 November on the application of money now registered as national fiscal deficit. He denied that RD$49 billion of the RD$187 billion deficit could be attributed to payments this year made to the quasi-fiscal debt at the Central Bank.
After meetings with President Danilo Medina and the IMF mission that is reviewing the unconcluded stand-by arrangement and prospects for the signing of a new agreement, Valdez told the press on Wednesday, 14 November that as of September, the Central Bank had only received RD$11 billion for its recapitalization. Valdez Albizu explained the Central Bank has made interest payments on the debt by issuing certificates of deposit. The quasi-fiscal deficit is the total of interest payments made by the Central Bank on certificates that it has issued since 2003 to cover that year’s banking crisis. Fernandez has blamed part of the RD$187 billion 2012 fiscal deficit on the 2003-2004 banking collapse that requires financing every year.
In his comments, Valdez Albizu said that Fernandez must have added up eight years instead of one to get to the RD$49 billion amount.
In his speech on Tuesday, 13 November, former President Fernandez said that the 2003-2004 financial crisis had created a deficit, which for this year, for the consolidated public sector, totals more than RD$49 billion. “Then as can be appreciated in three chapters only, in revenue that did not enter, the increase for the subsidy of the electricity sector and the recapitalization of the Central Bank, there is more than RD$141 billion of the fiscal deficit.”
http://elnuevodiario.com.do/app/article.aspx?id=309245
www.elcaribe.com.do/2012/11/15/recibio-del-estado-11-mil-millones-este-ano
http://hoy.com.do/opiniones/2012/11/15/454957/Que-se-dice
www.hoy.com.do/opiniones/2012/11/15/454932/Los-argumentos-del-Sr-Fernandez-no-se-sostienen
http://dr1.com/premium/news/2012/dnews111412.shtml#4