The Economist Intelligence Unit, in its 7 October news analysis, writes that “given the deterioration of the country’s economy, it appears inconceivable that Mr Mejia will win re-election in 2004.” EIU says that the Mejia administration “has refused to trim the bloated state-sector payroll to curb spending, eyeing next year’s presidential elections.”<\/p>\n
Furthermore, the research arm of the weekly news magazine warns: “It will be left to his successor to pick up the pieces” (or “pagar los platos rotos”). <\/p>\n
The report focuses on the Dominican Republic’s debt load, which it says “is becoming excessive and the government’s spending reckless.” The EIU also expresses the generalized concern that the composition of the debt has shifted under the Mejia administration from one that was primarily owed to multilateral and bilateral lenders to one that is predominantly owed to foreign commercial banks and other private lenders, with short-term external debt also on the rise. The EIU concurs with JP Morgan’s recent report that with the President hoping to secure his party’s presidential nomination to run for re-election in 2004, he is unlikely to change his course and impose austerity measures any time soon. As a consequence, it acknowledges that the government could have difficulties meeting commitments made to the IMF. <\/p>\n","protected":false},"excerpt":{"rendered":"
The Economist Intelligence Unit, in its 7 October news analysis, writes that “given the deterioration of the country’s economy, it appears inconceivable that Mr Mejia will win re-election in 2004.” EIU says that the Mejia administration “has refused to trim the bloated state-sector payroll to curb spending, eyeing next year’s presidential elections.” Furthermore, the research … <\/p>\n