Executive Power submits bond law for RD $110.88 billion
Diario Libre
SD. The Executive Power submitted to Congress yesterday a legislative proposal through which he would be authorized, via the Ministry of Hacienda, to issue and place securities (bonds) of public debt for an amount of up to RD $110,888,746,507 or its equivalent in United States dollars.
In a letter sent to the Senate president, Cristina Lizardo, President Danilo Medina explained that the approval of the legislative proposal called the Law of Public Debt 2015 will contribute with the process of minimizing the financing costs, in the medium and long term; as well as the deepening of the domestic capital market, through the development of a primary and secondary market that is liquid and efficient by means of placing securities on the local market.
The amount cited in the emission and placement of securities of public debt is included in the proposal for the law of the General Budget of the State 2015, as part of the financing required for this budgetary period.
According to article 2, the government will be authorized to order the emission and placement, of a part or all of the referred debts, attending the favorable financial conditions of the markets. The amount of the emission and placement of the securities which would be a approved through this legislation, will be determined by the method of placement which will be established by the Ministry of Hacienda.
The bonds should be placed within the budgetary period of 2015 and in case that by the end of the period there is a remainder of the public debt to be placed, authorization from the National Congress should be requested to modify the corresponding General Budget of the State. In the case the securities are placed in the domestic or local markets, they will be issued in amounts of RD$10,000. They can be freely negotiated in the secondary market, the stock market and outside of the stock market, as considered in the Securities Law of the Dominican Republic and in the Market of negotiations of securities of Public That, of the Ministry of Hacienda.
In case the bonds are placed on the international market the value will be issued in multiples of US $1000 and in RD $1000.
If this law is approved, it will authorize the Executive Power to carry out operations of handling, administration and/or management of debts during 2015 for up to 10% of the debt of the nonfinancial public sector. This would be in order to reduce the amount and/or the service of the external and internal debt.
"The amount of the omission approved by means of the present law could be increased in case some modification in the composition of the net financial sources of the deficit of the Central Government should occur, as contained in the General Budgetary Law of the State," the letter explains.
In a letter sent to the Senate president, Cristina Lizardo, President Danilo Medina explained that the approval of the legislative proposal called the Law of Public Debt 2015 will contribute with the process of minimizing the financing costs, in the medium and long term; as well as the deepening of the domestic capital market, through the development of a primary and secondary market that is liquid and efficient by means of placing securities on the local market.
The amount cited in the emission and placement of securities of public debt is included in the proposal for the law of the General Budget of the State 2015, as part of the financing required for this budgetary period.
According to article 2, the government will be authorized to order the emission and placement, of a part or all of the referred debts, attending the favorable financial conditions of the markets. The amount of the emission and placement of the securities which would be a approved through this legislation, will be determined by the method of placement which will be established by the Ministry of Hacienda.
The bonds should be placed within the budgetary period of 2015 and in case that by the end of the period there is a remainder of the public debt to be placed, authorization from the National Congress should be requested to modify the corresponding General Budget of the State. In the case the securities are placed in the domestic or local markets, they will be issued in amounts of RD$10,000. They can be freely negotiated in the secondary market, the stock market and outside of the stock market, as considered in the Securities Law of the Dominican Republic and in the Market of negotiations of securities of Public That, of the Ministry of Hacienda.
In case the bonds are placed on the international market the value will be issued in multiples of US $1000 and in RD $1000.
If this law is approved, it will authorize the Executive Power to carry out operations of handling, administration and/or management of debts during 2015 for up to 10% of the debt of the nonfinancial public sector. This would be in order to reduce the amount and/or the service of the external and internal debt.
"The amount of the omission approved by means of the present law could be increased in case some modification in the composition of the net financial sources of the deficit of the Central Government should occur, as contained in the General Budgetary Law of the State," the letter explains.
Diario Libre
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