Economy July 27, 2020 | 8:53 am

Only more loans can avert massive bankruptcies

World Bank

Santo Domingo.- Economy Minister, Juan Ariel Jiménez, warned Fri. that due to the impact of the COVID-19 pandemic, it will be necessary to resort to more loans to boost the economy and avert a massive closure of companies.

He said the measures are necessary for economic activity to continue, since if it stops, collections also fall. “In this particular situation, a fiscal deficit is needed that will lead to higher levels of indebtedness, but that the Dominican economy can bear.”

Jiménez said the economic projections are for a fiscal deficit close to 5% for this year. “In the current context of a fall in economic activity, it is not much, it is reasonable, and it could even be greater, but we always take care to take prudent steps, little by little.”

He added that these measures are necessary because if there is a general bankruptcy of companies, no one will save the country.

“Better now than in the coming years to see how we help companies and how to create companies that went bankrupt in this period, a greater deficit implies that in the future, in the third year or the fourth year, it is necessary to compensate for this greater current deficit and the compensation will be with reduction of expenses or with increase of taxes.”