Mistrust in Govt. sputters economy, ex-central banker says

Santo Domingo.- Former Central banker Guillermo Caram on Friday that a mistaken fiscal policy and lack of confidence by the economic agents in the government are behind the economy’s slowdown in the first half.

“The erroneous economic and fiscal policy is characterized by high bureaucratic expenses and unproductive subsidies,” the economist said.

Caram said the situation causes deficit budgetary results that have to be financed with high interest loans. “These borrowings mark the national financial system and discourage financing for the productive sector that generates goods to meet national needs and jobs.”

“An example of the uncontrollable excess of bureaucratic expenses is the increasing creation, by decree 275-17, of ProDominicana. This institution will serve to promote exports,” the expert said, quoted by hoy.com.do.

“Remember that Cedopex was created in the 1970s, which later became CEI-RD and the recent conversion of the BNV into the Export Bank. Added to this is the newly created bureaucracy,” he said. “This creates a climate of distrust stigmatized by the failure and frustration of government policies, projects and contracting.”