Government borrowing at record levels

So far in 2010, the Senate of the Dominican Republic has approved a total of US$1.165 billion in financing and sovereign bonds, and in the next few months will consider approving another 400 million dollars, according to press notes on Sunday morning. 

This means that this year has seen the government take on more debt than ever before in Dominican history.

The list of loan approvals is extensive and includes; $121.4 million for construction of the Guaig�� dam, $43.6 million for the Dr. Heriberto Pieter Cancer Hospital, $112.5 million provided by the Spanish Banco de Credito S.A. for water systems in Peravia (as well as a separate $13 million for the same project), $19 million for the  Monte Grande hydroelectric and U$30 million for the renovation and upgrading of electricity networks.

Aside from infrastructure projects, there are loans of  US$ 50 million for the Ten-Year Education Plan and US$16.9 million for the acquisition by the State of nominal shares of the CAF.

In addition there is $80 million for Urban Development Program provided by the Corporacion Andina de Fomento (CAF) for the construction of housing for about 18.500 people living in vulnerable areas and $100 million was negotiated with the Inter-American Development Bank (IDB) for natural disaster emergencies.

4 related news articles

Bengoa requests urgent approval of US$100million disaster recovery fund: Sep 1 2010

Another US$261 million in loans approved: Jul 8 2010

Cheaper home loans: Jun 26 2010

Economists criticize government borrowing: Mar 8 2010

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