They estimate losses in tourism will be compensated

Santo Domingo.-The Governor of the Central Bank said on Saturday that the losses that the Covid-19 pandemic will cause to the tourism sector, estimated at between 400 to 500 million dollars, taking into account the greater flow of remittances, of foreign direct investment (FDI) and the significant decrease in oil prices, will partially offset its impact in terms of Balance of Payments.

Lawyer Héctor Valdez Albizu assured that “monetary policy has enough space to continue reacting in a timely manner.

“That is, if more resources have to be provided than announced, we will do it,” he said.
He recalled that, among other actions, the Monetary Board and the Central Bank authorized liquidity provision measures for some 52 billion pesos and the reduction of the monetary policy rate by 100 basis points.

Valdez Albizu guaranteed the adequate flow of foreign exchange in the exchange market through the provision of foreign exchange for more than 500 million dollars.

The Commission to deal with Economic and Employment Affairs and the National Competitiveness Council held a meeting to evaluate the recent economic provisions established by the government and the Central Bank.

The meeting was chaired by the Minister of Finance, Donald Guerrero, Governor Valdez Albizu, and the Minister of Economy, Juan Ariel Jiménez.

Also participating were the ministers of Industry, Commerce and MSMEs, Nelson Toca, and of Labor, Winston Santos; as well as the directors of Internal Taxes Magín Díaz, and of Customs, Enrique Paniagua.

For the private sector, the meeting was led by Pedro Brache, president of the National Council of Private Enterprise (CONEP) and Celso Juan Marranzini, president of the Association of Industries (AIRD), with the attendance, among others, of Luis Molina Achécar, president of the Dominican Federation of Financial Institutions and representative of the Association of Commercial Banks ABA.

Guerrero explained that the measures taken by the Government have prioritized the health and nutrition of the population, and called on all sectors to act responsibly in order to preserve lives and maintain the country’s social and economic stability.

On his side, Brache praised the recent measures taken by the authorities given the complex economic situation that Dominicans have to face due to the effects of the coronavirus, and showed the will of that entity to contribute with its efforts to alleviate the negative consequences that can carry.

In this same sense, the president of the (AIRD, Marranzini, exhorted the businessmen to collaborate with the national authorities to successfully manage the impact of COVID-19, at the same time that he asked to strengthen communication between the different sectors involved to avoid damage undesirable.

During the meeting, the businessmen expressed their interest in specifying as far as possible some aspects included in the provisions issued by the institutions, in order to be able to adapt and comply with them effectively in each of their areas.

A note

Contribution

The meeting discussed the contribution that the financial sector can make through credit restructuring and interest rate adjustments; the facilities that the General Directorate of Internal Taxes will grant for the payment of taxes; the importance of maintaining the supply of food, medicines and basic products to the population; and the need to postpone the term of the bailiff’s acts.