Monetary Board approves transfer of assets

The Monetary Board, during its 23 December meeting, approved the transfer of assets held by the Central Bank, as well as other government assets, into several closed investment funds to be administered by fund managers appointed by the Central Bank. The issue at hand is the payment of the quasi-fiscal deficit produced by the issuance of certificates of deposits that will generate interest payments of RD$22 billion over the next year. The board’s new steps are part of a second phase of the proposed solution to the quasi-deficit problem. Assets now grouped under Proagra and Costa Norte, which formerly belonged to banks that were either rescued or closed in 2003, will be included with other government assets to be handled by the Central Bank. These actions are being taken under the aegis of Law 19-00, which created the Monetary and Financial Laws, as well as the Stock Market Law.