The government has signed a memorandum of understanding with the Spanish power company Union Fenosa, formerly responsible for two-thirds of the power distributed in the Dominican Republic. The government and Union Fenosa agreed to a discount on the debt agreement reached during the buyback of the company’s shares by the former administration in September 2003. The discount would reduce the debt from US$600 million to US$300 million. Congress now has to approve a US$300 million loan for the fulfillment of this agreement. The deal comes as part of ongoing negotiations with the International Monetary Fund regarding the Dominican government’s debt. The agreement is also expected to lead to an improvement in EdeNorte and EdeSur’s financial situations. The former agreement had bound payments from their best clients to pay back Union Fenosa. This represents a cash flow of around RD$120 to RD$150 million. Likewise, as reported in the local press, the interest that Union Fenosa charges on the pending debt was reduced from 12% to 9%. The agreement was signed in Madrid by Technical Secretary of the Presidency Temistocles Montas and Honorato Lopez Isla, for Union Fenosa.<\/p>\n","protected":false},"excerpt":{"rendered":"
The government has signed a memorandum of understanding with the Spanish power company Union Fenosa, formerly responsible for two-thirds of the power distributed in the Dominican Republic. The government and Union Fenosa agreed to a discount on the debt agreement reached during the buyback of the company’s shares by the former administration in September 2003. … <\/p>\n