Prince Albert of Monaco to launch Dominican tourist complex

President Leonel Fernández, will lead the ground-breaking ceremony for the construction of the Punta Perla tourist complex in the company of Prince Albert II of Monaco. The project has a projected investment of US$2.5 billion, and is the third tourism initiative of this type to be launched in the country since November.

The 10.2 million square meter property with 3.5 kms of beachfront will include four boutique hotels, 8,800 residential units, three golf courses, an inland marina, a beach club, an amphitheater, sports installations, commercial units, a shopping mall open to the public, a museum and staff accommodation.

Punta Perla is expected to be completed within a 10-12 year period.

It was announced that the Prince of Monaco, although not an investor in the company, has shown an interest in supporting Punta Perla, as he considers it to be an environment-friendly tourism development that could set the standard for other similar initiatives.

Punta Perla is promoted by European tourism specialist business groups.

Central Bank of the Dominican Republic Increases Overnight Rate

The Central Bank of the Dominican Republic, following its commitment to maintain
macroeconomic stability and control over inflation, in a monetary policy meeting held on
July 30, 2008, increased its overnight rate from 9.0% to 18% effective.

This decision is consistent with the targets set in the Central Bank’s Monetary Program
and aims to reduce inflationary pressure on internal prices, given the magnitude of the
external shock. Interest rate movements are conditioned to the performance of internal
and external inflation determinants, considering the lags in the monetary transmission
process.

In this regard, even when external volatility has shown signs of moderation recently, their
effect on the Balance of Payments has been significant and the monetary authorities
foresee a lagged effect on the Dominican economy. Moreover, there is a persistent
imported inflation component originated by high international food, commodities, and
other finished goods prices.

Domestically, inflation risks are still present due to an increase in aggregate demand,
driven by rising consumption and investment public and private, which could affect
inflation in the last two quarters of the year.

The Central Bank will continue to closely monitor the international situation and the
developments in internal markets, as well as their implications for mid and long-term
inflation expectations.

IFC approves initiatives to support emerging markets

IFC’s Board today approved a package of crisis response initiatives to support the private sector in emerging markets hit by the global financial crisis. On December 9, it also approved a Sovereign Funds Initiative which will enable IFC, a member of the World Bank Group, to raise and manage commercial capital from sovereign funds for equity investments in some of the poorest developing countries. The initiatives will support the private sector, which is critical to employment, recovery, and growth.

The crisis response facilities consist of a doubling of the IFC Global Trade Finance Program to $3 billion, a new $3 billion Bank Recapitalization Fund, and an Infrastructure Crisis Facility which is expected to mobilize at least $1.5 billion. These will be supported by advisory services addressing the needs of clients affected by the crisis.

The goal of the Sovereign Funds Initiative is to connect long-term commercial capital from state-owned investors with the substantial investment needs of private companies in developing countries.

“We are pleased that the Board approved and endorsed these important initiatives,” said Lars Thunell, IFC’s Executive Vice President and CEO. “With the support of donors and partners, these IFC facilities will provide critical assistance to many businesses and entrepreneurs and reduce the impact of the crisis on the poor. In addition, our new Sovereign Funds Initiative should mobilize new sources of commercial capital for long-term investment in frontier regions and countries.”

The four crisis response facilities are expected to deploy about $30 billion over the next three years. IFC will fund the facilities and has invited other donors, including governments and international financial institutions to contribute financing and expertise. The Japanese government has announced that it will become a founding partner and invest $2 billion in the Bank Recapitalization Fund.

IFC’s Board of Directors is a permanent board that represents IFC’s 181 member countries and guides its programs and activities.

About IFC’s Crisis Response Facilities

Expanded trade finance program: IFC will double its existing Global Trade Finance Program from $1.5 billion to $3.0 billion over a three year period to meet a large increase in demand for short-term trade finance. The expanded facility will benefit participating banks, including those in some of the world’s poorest countries.

Bank Recapitalization Fund: IFC will launch a global equity fund to recapitalize banks, as bank failures would further damage economic activity and worsen poverty in developing countries. IFC expects to invest $1 billion over three years and Japan has announced it will invest $2 billion in the fund.

Infrastructure Crisis Facility: This new IFC facility will bridge the gap in available financing for viable, privately-funded infrastructure projects facing financial distress. IFC expects over three years to invest a maximum of $300 million and that other sources will invest between $1.2 billion and $10 billion.

IFC Advisory Services: IFC is scaling up and refocusing its advisory services geared to financial institutions and governments, and reform of the financial infrastructure—banking for small and medium enterprises, leasing, microfinance, housing, investment policy and promotion, and business operation and regulation.

A 5.3 quake shakes the Dominican Capital

A tremor magnitude 5.3 on the Richter Scale was felt in the Dominican capital at 1:20 p.m. Thursday, prompting the evacuation of the country’s tallest building in operation, Torre Acropolis.

The tremor’s epicenter was located in the eastern part of the country at a depth of 106 kilometers, said the U.S. Geodetic Survey, in zone 16 kilometers north-northeast of Consuelo township, San Pedro province, and 16 kilometers south of the city Hato Mayor.

As of 1:40 p.m. the authorities hadn’t reported any damages from the shaking that lasted around 15 seconds, with a fist wave followed by stronger shimmying.

The U.S. Geodetic Service’s complete data on the tremor:

Thursday, December 18, 2008 at 01:13:48 PM at epicenter

Location 18.626°N, 69.370°W

Depth 106.3 km (66.1 miles) set by location program

Region DOMINICAN REPUBLIC

Distances 10 km (6 miles) NW (315°) from Consuelo, San Pedro de Macorís, Dominican Republic
20 km (12 miles) NNW (341°) from San Pedro de Macorís, San Pedro de Macorís, Dominican Republic

20 km (12 miles) SW (216°) from Hato Mayor, Hato Mayor, Dominican Republic

63 km (39 miles) ENE (77°) from SANTO DOMINGO, Dominican Republic

Location Uncertainty horizontal +/- 4.2 km (2.6 miles); depth fixed by location program
Parameters NST=181, Nph=181, Dmin=206 km, Rmss=0.78 sec, Gp= 40°,
M-type=regional moment magnitude (Mw), Version=6
Source USGS NEIC (WDCS-D)

Dominican economy to grow 4.5% in ’08

The Dominican economy grow 4.5 percent this year, according to a preliminary report presented yesterday by Economic Commission for Latin America and the Caribbean (Cepal) executive secretariat , Alicia Bárcena, which also projects a 1.5 percent growth for 2009.

It also predicts an annual inflation of 7 percent and the deficits of the non financial public sector and the current account would be 3.2 percent and 12.6 percent of the Gross Domestic Product (PIB), respectively.

The Cepal estimates an accelerated increase of the public cost in 2008, with an annual expansion of 18.6% in real terms. It adds that its level in proportion of the GDP will reach 20.3 percent, an increase of three percentage points compared with last year, which means a strong turn in the Dominican fiscal situation.

The report considered that Latin America’s and the Caribbean’s growth for 2009 will be 1.9 percent and the unemployment rate will rise from 7.5 percent this year to a range of 7.8 and 8.1%, as a result of the international crisis.

According to the preliminary overview of the Latin American and Caribbean economies, the cycle of economic bonanza comes to an end in 2008, when the region posts six years of consecutive growth.

Dominican Republic, Las Arenas eco-friendly residence

Las Arenas, a 25-story residential tower scheduled to break ground in the first quarter of 2009, introduces an new eco-friendly architectural design to Juan Dolio Beach in the Dominican Republic. The impressive building will be designed by Dominican architect, Jorge Mesa, and world-famous Spanish landscaper, Artur Bossy, both highly-respected professionals and leaders in their fields.

“The building’s ‘green’ design was inspired by the city’s natural beauty and unique landscape and views,” says Mesa. “Since its conception, Artur and I have worked hand in hand to deliver a truly luxurious standard of living for both residents and visitors, while maintaining the integrity of Juan Dolio Beach,” says Mesa.

The eco-friendly components featured in this development include roof-top solar panels, which will provide energy for all of the common areas and landscaping designed from the sites natural vegetation.

The tower, which consists of 80% glass, is designed to allow sunlight in but acts like a filter that only allows 20% of the sun’s heat to enter inside. This will minimize the use of energy from the air conditioners that cool the building. Las Arenas will also feature a treatment plant for water destined for the maintenance of the building and watering the gardens.

In addition to the “green” components that makeup Las Arenas is its extensive lush garden, designed by landscape artist, Artur Bossy, who can also be accredited for marvels, such as the Botanical Gardens in Barcelona.

Residences at Las Arenas include one bedroom lofts, two, three and four bedroom condominiums, and penthouses. Each unit features eco-friendly technology, sound proof walls, and controlled entry with an access card. Two large parking levels enable residents to have the option of three parking spaces per unit. Prices range from $210,000 - $2 million USD.

The project will also feature an infinity edge pool, Jacuzzi with hydromassage that seats up to 15 people, beach club and recreational section for children with daily supervision, and a fully-equipped gym with a stunning beach view. Additional amenities include a business center and meeting rooms, Wi-Fi throughout the building, and a state-of-the-art commercial and retail area that will carry designer fashion brands, numerous restaurants from casual cafes to fine dining, and a boutique spa.

Foreign investment in Dominican Republic sets another record

The director of the Dominican Republic Export and Investment Center (CEI-RD) said Thursday that foreign investment in the country jumped to US$2.35 billion up to September, or US$836.5 million more than the US$1.5 billion in the same period a year earlier.

Eddy Martinez said the figure sets a record in new foreign capital inflow.
The official said the investments are the result of the efforts and international relations president Leonel Fernandez has accomplished, which has motivated new investments to come to the country.

Last year’s total US$1.7 billion was also a record, attributed to the DR-Cafta trade deal that took effect in 2007.

Passengers on Dominican-Puerto Rico Ferry also get duty-free break

Every day more and more Dominicans living abroad, when returing to the country, apply for the Christmas facilities provided by the Dominican Custom Agency (DGA) during the year-end.

Some of the users of the ferry between Puerto Rico and the Dominican Republic qualify to bring free of duty, appliances and gifts amounting up to US$2,500.

Dominicans living abroad are happy because they could bring more items to their relativesduring the holidays.

Dominican industrialists want Fernandez to adopt tough measures

The country’s industrialists expect president Leonel Fernandez to announce, in his speech to the nation, emergency measures that have a vision to face the future challenges in 2009.

The Herrera Industrial Association and the Industrial Federation (FAI) say this emergency program must have three fundamental platforms based on offering immediate solutions to the high cost of living, citizen insecurity and the electrical crisis.

For the presidents of the Herrera industrialists, Manuel Cabrera, and of the FAI Ignacio Méndez, the chief executive must adopt measures to recover the citizens’ confidence. “We need to recover the confidence that the President had awakened some time ago."

Méndez suggests stimulating an increase in production, especially agriculture and industries, for which the Government shouldn’t compete with industrialists for the credit available.
They also agree with the Central Bank’s plan to begin lowering the interest rate starting February, but cautioned that this will happen only if waste in government is curtailed.

They said this implies an elimination of unnecessary posts created in the government and a redesign of the policy on subsidies, to eliminate those that are irrational.

Public, private sectors plot moves to shield the Dominican economy

Several business and industry groups as well as government agencies today agreed to join efforts to and form discussion groups among other actions to spur exports, create jobs and generate currencies to secure economic growth.

The associations Industries (AIRD), Exporters (ADOEXPO), Free Zones (ADOZONA) and the Agribusiness Board (JAD); as well as representatives of the country’s productive and exporting sector; and officials of the ministries of Industry and Commerce and Agriculture, the Export and Investment Center of Dominican Republic (CEI-RD), the councils on Export Free Zones (CNZFE), on Competitiveness and PROINDUSTRIA, an related sectors.

“Given that exports promotion is indispensable to maintain Dominican Republic’s development, a strategic and action plan will be established with short, medium and long term measures to eliminate the hurdles that affect the productive sectors’s competitiveness,” said the joint document.

The entities will also form work tables integrated by representatives of the public and private sector, “to identify and work in the application and pursuit of measures of consensus that respond to the common interest, to improve the productive sectors; competitiveness and promote exports.”

They also pledged to assume, within the agreed work tables, action in the areas of electrical supply, access to credit, land cargo transport, equal treatment for exports, the labor market, competitive macroeconomic environs and international promotion our exportable offer, “among others measures that will allow us to capitalize on the opportunities expected from a strategically located country, with creative and qualified human resources and committed to their work.”

Trust us to solve problems, Dominican President says

President Leonel Fernandez last night asked Dominicans to have confidence in his government, which he said is committed to seek solutions the problems that may affect them in 2009, such as the energy crisis, crime and food production.

He said the elections, the energy crisis, food and the global economic problems made 2008 a challenging and difficult year for the nation.

Fernandez spoke last night, together with his family after the year end concert for government employees and the lighting of the National Palace’s Christmas tree and exterior lights. “I’m hopeful that the new year will be better and we commit ourselves to work, even in adverse conditions, to maintain economic growth and social peace, create more jobs, attract new investments and continue the progress.”

He said he’ll deliver a brief speech to the country next week on measures to control crime and new economic actions to guarantee the country’s stability.

Dominican Republic has a Law on International Financial Zones

The Chamber of Deputies passed the bill that creates International Financial Zones in certain geographic demarcations in the Dominican Republic, including a legal framework for its operations.

The Senate already passed the legislation and now goes to president Leonel Fernandez, who’s expect it to sign it into the Law.

In those zones financial services and other related activities will be provided extra-territorially solely to non-resident physical people, and to others whose main address is abroad.

The bill establishes that in no case will financial services be offered from those International Financial Zones to the Dominican Government, nor to financial institutions regulated by special Dominican laws.

The bill is sustained in the Monetary and Financial Law, on the Stock Market, the Free Zones and Money Laundering.

Among the financial services available will be businesses and investment banking, public and private brokerage, trading of titles and commercial paper, monetary market, shares and merchandise of all types, money and asset management, deals with investment funds and project and corporative finances.