After the Government withdraw from the National Congress the Fiscal Modernization project (tax reform), international financial organizations They reduced the rating of sovereign bonds of the country. The president of the Republic, Luis Abinader .
When asked about his vision of this situationthe president said that it was something he considered as a reaction “normal”, since the withdrawal of the project that sought to raise 122 billion pesos so that the country would not even go into debt, as well as to carry out priority works, was news that was “unpleasant for economic agents.”
The head of state spoke about the issue during LA Weekly with the Press, meeting held every Monday at the National Palace with journalists.
“It’s normal, already Dominican Republic is in the world stageinternational, and that there is a conjunctural effect, as does any information that is not to the liking of economic agents,” he said.
He said that the reaction of the financial market was “conjunctural“and that he was certain that in the coming days a normal level would be reached, taking into account that the economy of the country “is growing“.
“However, this is going to… this, in the next few days, because it is going to reach the normal level that it has to be with a economy what is growinglook at these data of exportshas more currency, are growing its true economic drivers and those are cyclical reactions of the moment,” he said. Abinader.
When he referred to the “data of exports“He did so in reference to the figures he presented in LA Semanal in relation to the growth that the country’s export sector has had, in which he cited the following:
- In the period 2020-2023, 45,804.3 million dollars in exports were produced, growing 23.5% compared to 2016-2019, prior to the pandemic.
- For the first nine months of 2024, a 30.4% growth is recorded in relation to that pre-pandemic period of 2019.
- To date, the country has 3,979 companies exporting 2,974 products in more than 30 provinces, which are aimed at 156 markets.
- Exports to markets such as the United States, South Korea, Germany and the United Kingdom increased between 2021 and 2023.
No tax reform
He reiterated that the Government He has no agenda to make “any proposal” for another tax reform. However, he noted that he will focus on strengthening fiscal rules.
“What we do know is that we will make some adjustments and within those adjustments it is good to reiterate that we will continue with our fiscal rules and we will continue with the Fiscal Responsibility law,” he indicated.
Dollar bonds led losses in emerging markets on Monday, with those maturing in 2060 falling as much as 2.6 cents on the dollar, trading below 90 cents, according to indicative prices compiled by Bloomberg.
Journalist’s question
Regarding the withdrawal of the Fiscal Modernization withdrawal project, but before the end of its period a reform is contemplated, you just said that you have not contemplated another project and I also want to know what your vision is on the sovereign bonds which, due to the withdrawal of the reform, fell specifically for 2,060, fell 2.6 cents per dollar
Response from Abinader
I reiterate that we do not have any proposal and what we do know is that we will make some local adjustments and within those adjustments it is good to reiterate that we will continue with our fiscal rules and we will continue with the Fiscal Responsibility law.
It is normal that the Dominican Republic be in the world stageinternational and that there is an effect conjunctural As is the case with any information that is not to the liking of the economic agents, however, this is going to… this in the coming days because it is going to reach the normal level that it has to be with a economy what is growinglook at these data of exportshas more currency, are growing its true economic drivers continue growing and those are conjunctural reactions of the moment.
