El Caribe newspaper reports today that the International Monetary Fund officers
have requested information on where the money would come from to increase wages.
President Hipolito Mejia announced at a recent talk at the American Chamber of
Commerce wage increases of RD$757.2 million per month for public employees, once
the fiscal reform is decided on in July 2004. An unnamed source at the Technical
Secretary of the Presidency?s office told El Caribe that it is not a case of
disagreement between the Mejia administration and the IMF, but rather a simple
request by the IMF that the government identify the sources of the funds for the
planned increase. The official says also under consideration is the maintenance
of subsidies for gas and power that are in violation of the IMF agreement, but
have been continued. President Mejia is seeking to be re-elected on 16 May and
has promised that the subsidies would be upheld.