Hoy newspaper highlights that the Mejia administration has established a new record with the Congressional passage of US$750 million in loans. Most of these loans are with private banks at high interest rates and without grace periods. This is in addition to the congressional approval of US$500 million in sovereign bonds and a US$200 million Interamerican Development Bank loan. Neither does this sum include the US$42.02 million the government borrowed in January from a pool of banks. Nor does it include US$270 million that the Technical Secretary of the Presidency Rafael Calderon said in April the government had cleared. The Hoy report says, “What yesterday was bad, because the government was in opposition, today is good because the government is in power.” The newspaper highlights that most of the loans were first negotiated during the Fernandez administration. Today the DR pays 20% of the budget in debt service. If the debt is doubled, the nation could end up paying 40% or more of the budget to pay back debt. This would oblige the government to increase the price of fuel. The newspaper also points out that the Senate is studying more loans for US$700 million, including one for US$325 million for the health sector. For a list of the loans, see http://www.hoy.com.do/agosto2001/22082001/el_pais11.htm
