The International Monetary Fund’s mission to the Dominican Republic begins its study of the government’s re-acquisition of the Edes, the two power distribution companies formerly under the control of Spanish electricity company Union Fenosa. Another IMF delegation will arrive in the country at the end of the month to finalize the details of the standby arrangement in process. Central Bank Governor Jose Lois Malkum made the announcement as he emerged from a Senate meeting yesterday. Malkum assured that the agreement was going ahead, allaying fears that the IMF’s displeasure over the government’s decision to take over the electricity companies would lead to a suspension. Malkum added that the IMF accord would prompt a “budget reform” in the next fiscal year, and predicted further austerity measures as more funds are set aside for the payment of debts. There would also be some sacrifices required in what he termed “public spending”. Malkum said that the IMF was correct to view the debt situation with concern. The Central Bank governor said that he supports the removal of the controversial 5% tax on exports as well as the introduction of a 2% surcharge on imports. Jorge Ivan Ramirez, president of the American Chamber of Commerce and telecommunications company Codetel, called on the government to comply with the terms of the IMF agreement, with a strong focus on public spending reduction. Ramirez expressed his belief that this would create greater economic stability and warned that the consequences for the country, should this fail to be achieved, would be serious. Private business association CONEP urged the government to press ahead with its plans for fiscal reform. CONEP president Elena Viyella de Paliza said that the business community needed to know what lay ahead. “It is important that we define clearly what this reform is going to consist of. We cannot proceed with new projects if we do not know what awaits us on the taxation front.” Her comments are printed in the Listin Diario, calling for cooperation between government, civil society and the business sector.<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Monetary Fund’s mission to the Dominican Republic begins its study of the government’s re-acquisition of the Edes, the two power distribution companies formerly under the control of Spanish electricity company Union Fenosa. Another IMF delegation will arrive in the country at the end of the month to finalize the details of the standby … <\/p>\n