2003News

New sovereign bond issue has issues

Opposition to a new multimillion-dollar bond issuance grew stronger yesterday in Congress. The head of the Permanent Finance Committee of the Senate, C?sar D?az Filpo, felt that passing the new issue would be ?crazy? considering the delicate condition of the economy. Deputies Ovi Sald?var and Marino Mendoza asked the government to be more prudent. PLD Deputy Alejandro Mont?s, who sits as head of the lower chamber?s Public Works Commission, said that the proposed Coral Highway should cost only US$130 million, not the US$225 that has been requested. The National Council of Private Business (CONEP), headed by Elena Viyella de Paliza and former government advisor Celso Marranzini, has also come out officially against any new sovereign bonds. D?az Filpo (PRD-Azua) said that the hotel owners in the East should foot the bill for the new highway since they would be the chief beneficiaries of the road. Ovi Sald?var (PRD-S?nchez Ram?rez) and Marino Mendoza (PRD-San Crist?bal) said that the government should change its policy of foreign borrowing and exercise greater caution when taking on foreign debts. According to Alejandro Mendoza, the price of the proposed highway is 96% higher than it should be, since in 2001, the cost for the roadway was estimated at US$130 million by the Public Works Ministry.