At least seven new laws and six new regulations will be
required within the framework of the International Monetary Fund agreement. A
timetable showing the approval of the measures from July 2003 until January 2004
will also be required. The Executive Branch, Congress, the Monetary Board and
the Central Bank are the organisms that are charged with putting the measures
into practice.
Among these steps are seven laws to be sent to Congress: Systemic Stabilization,
also called ?Exceptional Program to Prevent Banking Risks?; the 5% surcharge on
exports and the new import charges; a law to eliminate the duty-free status of
the Savings and Loan Associations; a law on Financial Crimes; a law on the 2004
Budget; and, finally, a law for the Reform of the Public Sector.
Congress must activate three of the above regulations by specific dates: By 31
August, the 5% surcharge must be implemented; by 30 September, the Law on
Systemic Stability; and by 31 December, the Law for the National Budget for
2004.
Some of the things required of the Monetary Board include the approval of
resolutions that require sworn statements by shareholders and officials of
commercial banks to the effect they are not involved in any dubious accounting
practices that hide any part of a bank?s activities. This has been done. Next on
the list of things to do are a series of measures that will include deposit
guarantees; a set of rules that covers the Central Bank as a last-resort loan
agency; a rule to regulate the selection of members of the Monetary Board; the
creation of a panel of experts to look into the role of the Superintendent of
Banks and the Central Bank in the Baninter debacle; a set of rules that will
define and regulate the economic groups that control financial agencies; a new
set of rules that will govern loans to companies owned or controlled by members
of a bank?s board of directors; and, lastly, a set of rules to govern offshore
banking activities by Dominican banking institutions.