The Central Bank?s intervention in the case of the Banco Intercontinental (Baninter), and the decision by President Hip?lito Mej?a to seek a second term of office are affecting the image of the Dominican Republic among possible investors, according to Bear Stearns. This perception of the DR is referred to in the monthly report issued by Bear Stearns on country risk factors for April. Clients of the firm, as well as those holding Dominican sovereign bonds, receive this report. According to the letter, the fact that both issues occurred within the space of one month has had a negative effect on investment. However, in the case of the Baninter intervention, Bear Stearns considered this to be a one-time incident and not symptomatic of the Dominican banking system. They state that the fiscal cost of this case is still confusing. With regard to the Mej?a re-election bid, Bear Stearns said that any rejection of the idea on the part of PRD leaders might compromise the government?s stability during the next electoral process, and this, in turn, might have an effect on the economic success of the country.