can somebody tell me the difference between a loan an a contribution of capital, i wasn't very good at biology.

My God its snowing in the Domican Republic. What a snow job these bastards are feeding the population.

"According to a report from the Central Bank, the IMF will make an additional assignment of US$177.2 million in Special Drawing Rights (SDRs), equal to US$275.3 million and increase the international reserves by that much."

....


"because it is not an international loan, but a contribution of capital".


I just love how they word this so nobody really can fully understand what it means. What kind of journalist actually wrote this and who proof read this and allowed it? If these are the quoted words of one of our politicos someone should have asked for a clarification or stated it would be interpreted by the media as they see fit if they didn't choose to clarify.

Let me make the clarification since nobody else seemed interested.

This is a loan for US$177.2 million in Special Drawing Rights which will require us to pay back US$275.3 million but we will call it a contribution of capital and try to confuse people into thinking its free money that doesn't have to paid back.

The only thing I understand for certain is the money will be sooooooooo spent!

Actually ,it already is.

VeronicaDR,
yeah... nobody else seemed interested in your clarification... i think you're confused. first go learn some journalism skills so you can distinguish between a straight news -like this one- and an opinion, editorial, etc... in straight news you don't give opinions, you don´t convey viewpoints... you only say what the source says... forget about politicos, what country are you living in my dear?

There is an SDR fact sheet on IMF website and it is not clear how it works either. Actually, I don't think it is a loan. It would appear it is indeed additional capital. There is an interest component to it and I think it works this way: If you sell some of your SDR's for cash, you pay very low interest on the SDR's you sell. If you buy more SDR's than you are allocated, you receive a small amount of interest. There is no mention of ever paying them back. Does anyone have any other information or understand them better????

Understanding better by Leonel Fernandez.

SMOKE A DOPE

Does this mean that now the wasteful expenditures of the current goverment will be reigned in by the IMF, as so many have hoped. Or does these mean that LF has found around the normal supervisory aspect that comes with taking money from the IMF? Is this a new way to put us further in debt, while at the same time being allowed to continue his wasteful spending and blindness to the theft of other officials?

Hmmm..... suv nirvana??

Comparé à la dette des pays dits "développés", la dette extérieure et intérieure de la RD est insignifiante...
Elle permet de passer le cap de la crise mondiale, et sera remboursée lors de la reprise économique.

Cela n'excuse pas les gaspillages et la corruption.

Le pire de la corruption, indépendamment des détournements de ressources, c'est qu'elle est un frein au développement économique. en cela que même pour obtenir des autorisations tout a fait légales, il faut donner une "ayuda" ou perdre énormément de temps (des mois, des ans)...

Cette corruption est inscrite comme un mode de vie dans la société dominicaine, et touche toutes les classes sociales, toutes les couches de fonctionnaires, tous les partis politiques.
Elle sera difficile à éradiquer, sauf de construire de nouvelles prisons et les remplir ...

se jodio la republique dominique

piti hablandien caca hasta en la internet

I think you will find that the Dominican Republic, just like Jamaica and other countries in our region has a windfall gain as a result of decisions made in the G20 meeting in London where it was agreed to assist the developing countries by drawing down the Drawing rights , roughly in proportion yo the quota each country has with the IMF As the DR is a member of the IMF the DR can particiapte in this ...It most certainly is not a loan and will not be repaid ..I do not know of the conditions relating to the use of these drawings but I would hope that the IMF is thanked for the good decisions it made to combat the recession , especially in the smaller and poorer economies

I should have mentioned that each country can transfer or sell its drawing rights so in this case the drawing rights were transferred to the poorer countries from the richer countries ,,,as a reult of the agreements reached in London

I have done a little more research and have discovered that this money comes with no stipulations whatsoever. Well it now looks like LF has a lot more money to piss away.

That is an incorrect statement ..I believe that the DR central bank is talking to the World Bank now or very soon to ensure there is cover against the short term fall in revenues..The world bank will not move without the prior consent of the IMF and the IMF will be looking at the current performance of this country ...you may recall that the IMF figures were failrly close to the DR central bank figures in regard to growth of GDP and the DR has not been affected by the world recession as much as other caribbean countries ,,maybe good luck rather than good management , so I think the report card will not be too bad .

IMF is not to be trusted but they IF they really wanted to could GIve away the money....

READ!!! John Perkins; Confessions of a Economic Hitman

quite simply the last statement is total nonsense ,,the IMF together with the 2 arms of the world bank are great institutions for the poorer countries who would have sunk recently without assistance

Dominican Republic to seek loan to cover deficit
Thu Aug 20, 2009 12:43pm EDT
http://www.reuters.com/article/marketsNews/idUSN2051901720090820

The above article describes why the government needed the loan, and bellow I rewrote the other article by highlighting in parentheses the economic terms they use in their jargon). I hope you can try to draw your own conclusion. However, in my opinion, the IMF is not lending the Dominican Republic money; it is investing in the country which means it is buying something, what is it buying? We don’t know. If it is not a loan, then it is an investment, because a loan involves the deposit of a collateral as a guaranty for the loan, while if it is an investment, it is buying assets, what kind of assets or other interests? You and I don’t know. And to whom belong the IMF? If you don’t know then, God helps you all.
Just remember, your country is in no way in condition to say no.

Santo Domingo- After open talks between the Dominican government and the international Monetary Fund (IMF), regarding the signing of a possible agreement for the country to receive disbursements more quickly, the international organization will transfer US$275.3 million later this week.
According to a report from the Central Bank, the IMF will make an additional assignment of US$275.3 million and increase the international reserves (amount of foreign money) by that much.
“With the new resources, the gross international reserves (which is a measure in dollar equivalent of the available foreign exchange resources to meet essential import requirements) will surpass US$2.7 billion
and the liquid reserves (the cash you have in hand compared to the leverage in assets owned) will be more than US$1.5 billion,of capital which is a " (Cash or property acquired by a corporation (the Dominican Republic) from a shareholder (the IMF) without the receipt of additional stock.

Such amount is added to the Basis of the shareholder's (IMF) existing stock, and the corporation's (Dominican Republic) basis is carried over from the shareholder” (IMF)

It sounds like this money is meant as a sort of 'balance sheet' stabilizer. The SDRs seem like some form of mutant equity in the IMF, or line of credit with them. I guess holding them creates the illusion of a sounder capital base or improved liquidity at the RD central bank or Treasury? Tough nut to crack based on only the brief DT.com article.

http://www.guardian.co.uk/comment....27/ann-pettifor-capitalism-crisis
The IMF incompetence exposed

http://www.guardian.co.uk/comment..../26/vince-cable-capitalism-crisis
How did that happened?

http://www.guardian.co.uk/comment....ar/09/capitalism-crisis-john-gray
Capitalism the way we knew it is dead

http://www.guardian.co.uk/comment..../27/will-hutton-capitalism-crisis
What is coming

And this is why you shouldn't trust the IMF. They're not there to lend money any more, in fact they stopped lending money since 2007. What they do now is investing in countries as third party or share holders.
They are bankrupt now, but are still plundering weaker nations.
I paste some interesting links above, just take a look at them, and tell me if your government is not selling the inheritance of its future generations the same way the American government has sold its citizens' one. Every single American owes more than five thousand dollars on the United States Public debt and it is still growing with compount interest.

This money will be spent very well on what?

ON EDUCATION!! :)

And if you're still not convince, listen to this:
http://video.google.ca/videosearch?q=the+IMF&emb=0&aq=f#

yes, they want that money ASAP so they can get it into their pockets

VeronicaDR is correct, numbers do not lie. if we are getting $177.2 million and have to pay back $275.3 million, the difference of $98.1 million is all interest aka more debt. As usual the IMF is raping these idiots with interest, it will get to the point where we will default just the same way Ecuador did and will have to "renegotiate" the loans which will allow the U.S. and certain European countries to exploit us much more than now, cheap land deals, and other commercial interests. These men are dooming our country with their use now and worry about how to pay it back later attitude. With an ever worsening educational system in DR most people will be unable to distinguish WTH is really going on except the "elite" at the top of the food chain in DR. If you do the math this contribution of capital is at a cost of a 55.3% APR (if 1 yr loan). This is only the beginning of what is to come, read up on Ecuadors history to see that similar tactics are being used against the DR.

please read up on the IMF's own website which very clearly explains that SDR's are charged interest and see that i'm not making any of this up. http://www.imf.org/external/np/exr/facts/sdr.htm only a well informed and educated public can prevent these type of things from occurring.

Estrella that's what I am getting at, their "help" isn't really help at all, they just hurt the countries they supposedly help with interest "bombs" not unlike those SDR's they are now using with us. They are taking advantage of the Dominican Governments mismanagement and greed, and it will doom the country into an endless debt in the long term.

The World Bank is an International extension of the Federal Reserve, and the IMF is an extension of the Bank of England. Both were created after the second World War in order to rebuild Europe, and both are the instruments of domination for the Anglo American Empire. They deal only with states and not with individuals, after lending Europe billions of dollars to rebuild, they later extend their lending help to the third world under the conditions that those poor countries will open their market and privatize their State enterprises. Then they must give their natural resources for exploitation by First World Corporations. And that's the policy they've been pursuing up til now.
They're bankrupted now because they can't lend anymore money, so, the cash they still have in hand, they are investing it in countries, but by dealing with government instead of individuals, they are sure to silence opposition from the masses.

Estrella,

The World Bank, the IMF and all their subsidiaries know pretty well how the money will end up when they lend it to third world countries. Hell! Even in first world countries crooks are stealing billions from people, and then you tell me that you give a line of credit of a few hundred millions dollars to a bunch of third world crooks, and don't expect them to plunder it, who's kidding who? Not you and I anyway.

It is in the advantage of the World Bank and the IMF to allow those crooks to escape with the jackpot (their country piggy bank), because they know pretty well that those scoundrels have nowhere else to bring that money than to where it came from and I mean, to them. After losing all their money, those poor nations are caught thereafter in a vicious cycle of old debt reinbursement and new ones in order to replace the money stolen.

That's what has happened to most of third world countries : yours, mine, the African ones, the South American ones everybody that was unfortunate enough to have crooks as leaders.

Welcome to the enlighten ones Estrella.

People are so weary about their socio economic future that they have allowed themselves to being deviated from supervising how the politicians are running their countries. The fact is that we're living in a world where information audio and visual is so abundant that people don't know what to believe, because they are assaulted everyday by a tons of nonsense that contradict each other everyday They don't know which ones are propaganda, which ones are genuine trustable news, and which ares for mind manipulation.
They just turn to their government for clue without knowing that it is their own government that is leading the desinformation charge and that is selling them to the World financial interests.
It is a shame.

oupala07 and Estrella, it seems the three of us know what is really going on, and i am actually glad there are people on this forum that know the real deal. Thats why I am always so adamant about the education system in DR because the dumbing down the masses with a poor quality education makes them oblivious to this type of scheming, the situation will always get worse and worse allowing more and more exploitation of our country and it's people.

Welcome to the Awarenessian Club The_Analyst

Don't be amazed my friend if there are, so far, only three of us that are able to see in the deforming mirror of the loan sharks of the world. Finance and economic are not things that the common people will either discuss or talk often about, and the reason is simple : too complicate for them. Hell! People can't even understand how to wisely use the few dollars they spend on a monthly basis, how do we then, expect them to comprehend the wheel and deal of the world high finance that affect their living so negatively.
The ball is in the elite's camp, because in these circumstances, it is its duty to rise and questioned the government behaviour toward the nation's well being business, and so far, everywhere I look, whether it is in the First or third world, the elite has sided with the financial sharks and the politicians, because money and power has stonned it as surely as a jumbo joint of weed.
We're in deep shit my friend.

oupala07 I've been aware of this stuff for quite some time now, but it's as you say most people stay away from the truth because it seems to complicated for them so they just conform as usual. We're in very deep crap but what's going to happen is that when the shit hits the fan the politicos are just going to go on accusing each other and continue the mindless process while the bankers get rich.

The_Analyst,

"We're in very deep crap but what's going to happen is that when the shit hits the fan the politicos are just going to go on accusing each other and continue the mindless process while the bankers get rich."

That's exactly what is happening right now. It is nobody's fault, but at the same time, they are kicking the people out from their land without proper compensation in order to fulfill the agreement they signed with the IMF ( complete privatization and access to your market and the availability of your natural resources.) Tell me now, I know that your govenment is a big nickel exporter. Can you tell me so far how much of that mineral has been exported, how much it has put into its safe? Then, what that money has been used for? And you can extend this question to all the products that constitute yor GDP. You tell me after how much billions of US dollars you have reached and what and where they have been spend for.

You'll be amazed to know that most of the Dominican Republic money like in Haiti is sleeping soundly like precious babies in foreign banks and stock exchanges while the masses are going hungry. I am telling you right now if all the money produced in Haiti and the Dominican Republic was spent for the development of these two countries, our people would have been the happiest ones in the Carribean and even in the whole world.
Unfortunately, that money is funneled toward some corrupt officials and industrials who do not give a damn' for nation building but their life style they want to preserve at any cost, even the one to see their people being lost at sea in sharks infested waters.
It is shamefully sad indeed.

mr leonel this idea is going to solve all the problem in the dominican republic, create a monetary union together with south america, all the caribbean and central america, unity is all power donot forget.