IMF representative Ousmene Mandeng told reporters that the current impasse in the Congress that is holding up the approval of four bond issues, might well force the government to seek alternative sources of money. He said that the IMF expects the Dominican Republic to fulfill its obligations and the program that has been set forth in the Letter of Intent. Mandeng was most diplomatic as he pointed out that “in areas that are under the government’s control, the IMF expects the government to maintain the timeline…”
He pointed out that while the bonds are only one part of the program, they are a very important one. The four bond issues that the Executive has sent to the Congress total RD$9.38 billion. RD$2.3 billion is destined to go to provide capital for the Central Bank, RD$1.5 billion for Banreservas, the governmental commercial bank, and RD$2.5 billion for debt payments. A total of RD$1.89 billion will be used to redeem 50% of the outstanding 1996 bonds and another RD$1.1 billion for the redemption of 2003 and 2004 Sovereign Bonds. The Chamber of Deputies approved several of these issues and moved these to the Senate floor where they stagnated and will need to be reintroduced by the Executive Branch.