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Posts filed under 'Economy'

RD$11.37B traded in Dominican notes, bonds so far, Securities chief says

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- Securities Superintendent Haivanjoe NG Corti?said the issuing of public offerings in Dominican Republic has reached RD$11.37 billion to date.

He said 3.5 billion has been traded in the Dominican Bolsa's Primary Market and 7.9 billion in the Secondary Market; whereas in the Central Bank notes Secondary Market the figure is 4.9 billion.

NG Corti?spoke before partners and associates of the Dominican-Spanish chamber of commerce and the Stock-exchange School, in the seminar "The market as a source of financing," aimed at promoting the stock exchange culture and to contribute with business.

The official said business must take part in the stock market, which for any economy is competitive, complementary, alternative and necessary for growth and development.

He cited Spain's case, where one third of the population is involved in the stock market as an alternative financing source.

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Dominican government seeks contractor to assess refinery's worth

Domican-Today

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- After a meeting with the Shell executives for the purchase of that company's shares in the Dominican Petroleum Refinery, Hacienda minister Vicente Bengoa said a bidding would be held this week to contract a company that determines that stake's real value.

However, Shell's representative in the country, Rafael Maradiaga, reiterated that its value is 183 million dollars, and said in the meeting it was established the processes and operations to be carried out for the sale of the shares.

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Domican-Today

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- Banco Popular Dominicano president Manuel A. Grullon said last night that bank was awarded the prize "Dominican Republic's Best Bank in 2007," granted by the specialized prestigious magazines The Banker, Euromoney and Latin Finance.

The announcement came during the bank's traditional yearend cocktail hosted for the country's media executives and leaders of public opinion, in this occasion held in the Popular's main office building.

Grullon said in addition to the award for the bank, the magazine Mercado's yearend local survey found that the Popular continues being the financial company Dominicans most admire. "These repeated national and international recognitions to the Popular is due, fundamentally, to the constant support of our clients and to the tradition of service and efficiency which characterizes our financial organization's personnel."

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Dominican Bolsa's 2007, 500% jump in trades "spectacular," chief says

Domican-Today

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- This year the Dominican Bolsa's (stock market) volume jumped by more than 500 percent, with an average of RD$4.0 billion traded, at interest rates of around 12 and 14 percent, said its executive director Daris Estrella, who described this year's operations as "spectacular."

She said issuers went from five to, whereas trading in the secondary market rose from 7.0 percent to 75 percent.

Estrella said the Bolsa's entire trading is on fixed income notes, though expects to start offering shares of the different companies as early as two years from now, for which companies must meet the Superintendence of Securities' requirements.

For 2008 she expects a jump in the issuing of notes by the companies which seek to finance their operations via the Bolsa. "Now there's a time for a takeoff and finally people are understanding the importance for companies go to the market to access capital."

Estrella spoke to the press during the Regional Conference on Money Laundering in the Financial Market, hosted by the Superintendence of Securities, in coordination with the U.S. Securities and Exchange Commission and the U.S. Agency for International Development, to train on how to keep money from drug-trafficking from affecting the sector.

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Largest Dominican bank to issue US$124.4M in 10-year bonds

Domican-Today

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- The Banco Popular, Dominican Republic's largest bank, said today it will issue US$124.4 million in bonds, after the country's securities and banking agencies authorized the offer.

The Popular's bonds will have a 10-year maturity and are issued to "widen its asset base," it said in an emailed statement. It said the bonds, offered to qualified local and international institutional investors, would give the Popular a solvency index of 15 percent, exceeding the country's regulatory requirements by 50 percent.

Fitch Ratings gave the operation an A (dom), and would allow the Popular to raise its assets by US$121 million, it said.

In March the Popular bank said its assets rose US$43.5 million in 2006, or 15.4 percent, to USRD$ 326.4 million, and posted 14.6 percent more deposits than the previous year.

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Dominican transport unions agree on how to get diesel subsidy

Domican-Today

12/6/2007

Source: The Dominican Today

SANTO DOMINGO.- Public transport drivers and the Industry and Commerce Ministry agreed to provide the subsidy on diesel according to their routes, said Ramon Perez Figuereo, president of the of the union CNTU yesterday.

The regulation applies the Government's subsidy for up to one million gallons of tax-exempt fuel to drivers and which, according to Perez Figuereo, could be implemented by next week. On Monday, Juan Hubieres, president of the union Fenatrano, demanded this modality to supply the diesel as a way to prevent corruption.

Blas Peralta, head of the truckers union Fenatrado, said the diesel will be taken to the tanks the unions have to be sold there at 102 pesos per gallon to their routes' drivers, and supervised by Industry and Commerce personnel. "The license plate, hour and route of each vehicle will be written down and then we'll pass an invoice on to the Hacienda Ministry for the amount of gallons which we received."

The daily average consumption per route is from 30 to 40 gallons of diesel.

Although not one of the "allies of the Government," Hubieres will also have to meet with Industry and Commerce minister Melanio Paredes, to give him a list of his union's routes and vehicles, and insists that not one gallon of diesel should be given to the unions.

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Dominican business leaders slam 'discriminatory' gas subsidy

Domican-Today

12/1/2007

Source: The Dominican Today

Santo Domingo.- The government's plan to subsidize diesel for public transport and cargo vehicles, while welcomed by the transport sector has been criticized by business leaders, who describe the measure as discriminatory and politically motivated.

These were the views of the National Gasoline Retailers Association leader Juan Ignacio Espaillat and former National Private Business Council head Elena Viyella de Paliza, who said that the subsidy was contradictory and discriminatory, which could become a source of "tremendous administrative corruption".

Freddy Mendez, president of the Bus Owners' Union said that the subsidy should be analyzed to determine whether or not it was needed, while transport leader Juan Hubieres suggested that it could be applied according to route and not by organization or union.

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Fuel prices up again

Domican-Today

11/24/2007

Source: The Dominican Today

Santo Domingo.- The Industry and Commerce Ministry has raised fuel prices again this week, as a result of the continual increase of international petroleum prices.

Premium gasoline will cost RD$167.40, following an increase of RD$0.30 per gallon, and regular sells for RD$157.60, an increase of RD$1.10. Regular diesel will cost RD$136.20, an increase of RD$3.10 per gallon, and premium diesel will sell for RD$140.00, an increase of RD$3.00 per gallon.

Kerosene will sell for RD$136.00 following an increase of RD$3.70 per gallon. The only fuel to remain at last week's prices is Liquid Petroleum Gas (propane). Subsidized LPG costs RD$59.95, and non-subsidized LPG remains at RD$81.71.

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Costa Rica signs DR-CAFTA agreement

Domican-Today

11/24/2007

Source: The Dominican Today

San Jose (Costa Rica).- The DR-CAFTA free trade pact between the Central American countries, the Dominican Republic and the United States was signed into law in Costa Rica on Wednesday amid protests and a large military deployment.

President Oscar Arias signed DR-CAFTA into law at the presidency while hundreds of demonstrators surrounded the building in protest, reported La Nacion newspaper. The issue is still mired in controversy after a narrow victory for the free trade agreement in an October 7 referendum.

Troops were deployed in 100m perimeter surrounding the presidential headquarters to contain protesters and for fear of a repeat of the huge protests that preceded the DR-CAFTA referendum.

The free trade agreement is scheduled to start in March 2008, but the legislature needs to pass 12 complementary laws in order for it to enter into effect.

Costa Rica is the last of the DR-CAFTA nations to sign the agreement, which has already taken effect in the Dominican Republic, Guatemala, Honduras, Nicaragua and El Salvador.

The White House pressed hard for the U.S. Congress to ratify the deal in 2005, when it passed the House of Representatives by just two votes.

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Jamaican broker firm sees Dominican Republic as springboard into wider Central America

Domican-Today

11/18/2007

Source: The Dominican Today

Kingston.- According to Jamaican newspaper the Financial Gleaner, Jamaica Money Market Brokers (JMMB) has set sight on two Central American markets but is cagey about its plans ahead of research under way to determine entry.

But JMMB chief executive officer Keith Duncan told the paper in an interview that it's likely that he will be replicating strategy employed in the Dominican Republic - which straddles the Caribbean and Central America - where the brokerage bought controlling stake in BDI America, on which it has spent US$5 million to acquire and outfit.

"By the end of the year 2010, we intend to be in two other territories," said Duncan.

The explorations are currently being done in Costa Rica, Honduras and El Salvador, with indications that Costa Rica is likely to be one of the two.

The level of investment is also to be determined but assuming JMMB intends to maintain spend at the same levels as when it entered DR - its investments in Central America may top US$10 million.

However, much is dependent on market studies to determine the scope for business and existing opportunities.

"The successful launch of JMMB-BDI America in the Dominican Republic represents the entry point into the Central America free trade area," said Duncan.

Explaining his strategy being put into operation under the company's Vision 2010 plan, Duncan said he plans to establish a solid footing in the Dominican Republic to take advantage of the local market.

JMMB will use that market as spring board into other Spanish-speaking nations.

Essentially, JMMB BDI America is to be positioned as the hub of JMMB's operations in Central America.

Duncan said he would be targeting underdeveloped markets in an effort to share its Jamaican experience in the areas of securities trading, best practices and risk management.

In this way, Jamaica becomes the benchmark on which the group will judge the performance of its subsidiaries.

JMMB is capitalised at $7 billion while its assets at balance sheet date to March 30, were audited at $89 billion.

At home, JMMB is exploring entry into commercial banking.

Duncan said the spend in Dominican Republic was small compared to the US$25 million to US$100 million required to build out a bank or financial institution.

"We intend to start small then develop as with JMMB five years ago in Trinidad with an investment of US$1 million," remarked Duncan.

The company is already in the commercial banking sector in Trinidad and Tobago, with 80 per cent majority share of the small Intercommercial Bank Limited.

No acquisition plans are in the pipeline for the calendar year, but the company intends to start evaluating the market in Trinidad and Dom Rep for opportunities next financial year.

JMMB's broader 2010 plan is laid out in four areas - greenfield opportunities to drive its growth for the next three years, asset management growth, credit services, and expanded range of products.

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