Franco Uccelli, who follows the Dominican Republic for the Bear Stearns brokerage firm, reports on what he perceives as ?encouraging signs? from the outgoing Mejia administration that the three-month transition period until a new Fernandez government assumes power on 16 August may be smoother than anticipated.
Yesterday, Technical Secretary of the Presidency Carlos Despradel said: ?The government will set an example of austerity in these three months. The President has told us that his goal is one of austerity and to meet IMF commitments. It will be a model, exemplary transition.?
Uccelli says the call for “total austerity” during the transition period allays concerns that the Mejia administration would resort to fiscal slippage and policy inaction during its remaining time in office.
News reports say that a transition team will be interacting with government sectors.
Ironically, Mejia received the government in 2000 from the same people he must now turn it over to.
News reports also highlight statements made by US Ambassador Hans Hertell, who said the US is offering its assistance in dealing with multilateral institutions so that the IMF agreement remains on track. Hoy newspaper reports today that the US Ambassador visited the PLD President-elect yesterday at the Fundacion Global Democracia y Desarrollo. Hertell said he was ?optimistic? on the economic future of the Dominican Republic when speaking to the press after the meeting.
Uccelli also sees as positive the ?gracious manner in which President Mejia accepted electoral defeat in last Sunday?s election,? and he concludes that the ?transition months may very well prove to be a positive period of consensus and institution building for the Dominican Republic, contrary to market expectations.?
Yesterday, the Presidential press secretary, Luis Gonzalez Fabra, called a press conference to refute the rumors that President Mejia would resign before then end of the 90-day transition period.
El Caribe newspaper says President Mejia will speak to the nation tomorrow on the morning TV talk shows on Channel 11 and Channel 2.