New Budget Amendment Proposal for 2020 requires USD 3.4 billion of additional financing.

DOMINICAN REPUBLIC - In Brief 25 Aug 2020 by Magdalena Lizardo
Yesterday the new government of Luis Abinader delivered the proposed amendment to the public sector budget for 2020 to the National Congress. The amendment is justified by the additional drop in revenues of USD -1.2 billion and the increase in expenses of USD 1.9 billion, with respect to the values contemplated in the amendment approved last June. The new projected public deficit amounts to -9.3% of GDP for 2020. The government is assuming a reduction of real GDP of -4.0% for 2020. The increase in spending is oriented to provide additional resources to address the effects of Covid-19 in the areas of health, education, social assistance, agriculture and housing construction affected by the recent storms. The financing required for 2020 is estimated at USD 10.2 billion, USD 3.4 billion additional to what was established last June. Although the Ministry of Finance can decide the distribution between external and domestic sources –based on the most favorable conditions– it is contemplated that USD 7.3 billion would be covered with external sources and USD 3.0 billion with domestic sources. Compared to current budget, The proposed amendment implies an increase in financing from external sources of USD 2.2 billion and of USD 1.1 billion from domestic sources. The external source contemplates the issuance of sovereign bonds with a term of no less than 5 years, while domestic financing must be for a term greater than one year.Table_DR_New_Budget_Amendment_Proposal_08_2020_.docx

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.