Government will receive US$550 million from Barrick Gold this year
Diario Libre
SANTO DOMINGO. After the agreement reached between government authorities and executives from Barrick Gold (Pueblo Viejo Dominicana Corporation-PVDC), the Dominican government will receive some US$550 million from the Canadian company throughout the rest of this year.
Nonetheless, the Minister for Economy, Planning and Development, Temistocles Montas, explained yesterday that this payment is subject to whether the price of gold on the international markets remains at US$1,600 an ounce.
For his part the Budget Director, Luis Reyes, said that the government will submit to the National Congress a supplementary budget with the resources that the administration will receive from Barrick, but which first, the legislative power should approve the modification of the contract for the exploitation of the mine.
"If they are going to use those resources, there is no other way to do it, other than through a supplementary budget, and by way of a transparent assignment of those resources for public knowledge," said Reyes, as he took part in a weekly meeting that is held by the General Directorate of Communications (Dicom).
The official said that he did not know the amount of the complementary budget that would be submitted. He said that for its preparation they expected that the National Congress approves the modified contract which was agreed to by the parties. At the same time he said that the budget would be submitted to the legislature for approval in September.
Austerity will continue
In another area, the Budget Director revealed that the government will need another year o austerity in order to achieve the goals of consolidation of the fiscal accounts and at the same time reduce the fiscal deficit possible by around 1% of GDP.
"We cannot achieve this in just one year. The reduction of 1% is what makes it possible and sustainable for the government to apportion the amount of resources that are sufficient to be able to honor its debt obligations in the coming years," he said during the meeting with the national media that was held in the Orlando Martinez Hall of the Presidential Palace.
"Remember that the goal is not to reduce the fiscal deficit by 2.8% o GDP, the goal is much more ambitious; the goal should be in the short, medium and long term to reduce the deficit very close to zero, possibly at least to less than 1%," he pointed out.
He said he feels that if the economy grows they can expect a greater number of jobs and an improvement in general conditions, as well as an improvement in the macro-economic climate.
"Once the administration begins to execute the part of the increase of the loan portfolio and the increase of the loans to the private sector, as a result of the decision of the monetary authorities to put at the disposition of the financial institutions and the people some RD$20 billion, the economy can be strengthened," he underlined.
He added that the execution of the programming for the first quarter (January - March) was 1.5% under what they had forecast (0.7%), but it ended with the execution of a deficit of 1%, which he considered helped the government to create the conditions so that the country could go to the international financial markets and place debt instruments (bonds).
Nonetheless, the Minister for Economy, Planning and Development, Temistocles Montas, explained yesterday that this payment is subject to whether the price of gold on the international markets remains at US$1,600 an ounce.
For his part the Budget Director, Luis Reyes, said that the government will submit to the National Congress a supplementary budget with the resources that the administration will receive from Barrick, but which first, the legislative power should approve the modification of the contract for the exploitation of the mine.
"If they are going to use those resources, there is no other way to do it, other than through a supplementary budget, and by way of a transparent assignment of those resources for public knowledge," said Reyes, as he took part in a weekly meeting that is held by the General Directorate of Communications (Dicom).
The official said that he did not know the amount of the complementary budget that would be submitted. He said that for its preparation they expected that the National Congress approves the modified contract which was agreed to by the parties. At the same time he said that the budget would be submitted to the legislature for approval in September.
Austerity will continue
In another area, the Budget Director revealed that the government will need another year o austerity in order to achieve the goals of consolidation of the fiscal accounts and at the same time reduce the fiscal deficit possible by around 1% of GDP.
"We cannot achieve this in just one year. The reduction of 1% is what makes it possible and sustainable for the government to apportion the amount of resources that are sufficient to be able to honor its debt obligations in the coming years," he said during the meeting with the national media that was held in the Orlando Martinez Hall of the Presidential Palace.
"Remember that the goal is not to reduce the fiscal deficit by 2.8% o GDP, the goal is much more ambitious; the goal should be in the short, medium and long term to reduce the deficit very close to zero, possibly at least to less than 1%," he pointed out.
He said he feels that if the economy grows they can expect a greater number of jobs and an improvement in general conditions, as well as an improvement in the macro-economic climate.
"Once the administration begins to execute the part of the increase of the loan portfolio and the increase of the loans to the private sector, as a result of the decision of the monetary authorities to put at the disposition of the financial institutions and the people some RD$20 billion, the economy can be strengthened," he underlined.
He added that the execution of the programming for the first quarter (January - March) was 1.5% under what they had forecast (0.7%), but it ended with the execution of a deficit of 1%, which he considered helped the government to create the conditions so that the country could go to the international financial markets and place debt instruments (bonds).
Diario Libre
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