The government of President Hipolito Mejia could be leaving the payment of the US$27 million due on the 2013 sovereign bond up to the next administration. Central Bank Vice-Governor Felix Calvo told Hoy newspaper that the notification to make the payment was never received from Finance Minister Rafael Calderon. The payment is actually past due, leaving the DR in the 30-day grace period, but must be made by 27 August to avoid a default scenario.
Meanwhile, the foreign exchange rate found itself at a one-year record low of RD$40 to US$1 in exchange houses on Wednesday, 12 August. Dollars were being sold for RD$41 on 12 August.
International emerging market brokerage firms speculate that the decision raises the risk of restructuring.