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Asofidom affirms the Public Trust Law guarantees continuity to State projects

Cristian Molina, presidente de Asofidom. Foto: Fuente externa

Santo Domingo. – The CEO of the Association of Dominican Trust Companies (Asofidom), Cristian Molina, affirmed that the Public Trust Law it would guarantee the continuity of state development projects, regardless of the fact that there are changes of government every four years.

“Continuity over time is important, because there are works that are executed in four years, but other actions can take up to 20 years and those Projects development programs continue to be executed, regardless of changes in politicians,” explained the fiduciary policy specialist.

In another order, he explained that the administration of State resources through a fiduciary does not mean the privatization of the public good, because in the end the important thing is to know who is the settlor and who is the trustee and for whose benefit that trustee works.

Molina spoke in those terms on the program “Lo Bueno con Alexandra Izquierdo”, hosted by the businesswoman and politician and the journalist Elías Ruíz Matuk.

“How do we ensure that the money we invest in a project that we believe in as a nation continues to be fulfilled over time regardless of political changes?” questioned the executive when arguing that “this is achieved by creating a public trust, separating those assets of the general patrimony of the State, leaving a administrator professional, the trustee, who can only use those assets for that purpose, and it will not matter how many governments come or go.”

He indicated that it is necessary to understand why we should have public trusts and what is the way to regulate them.

He affirmed that the same benefits that the trust has for the private sector, it has for the State.

He said that with Law 189-11 a public trust can be created, but it was not created for that purpose, so this law must undergo a transformation to contain the regulations optimal to apply the public trust.

He explained that a escrow It is a contract, which is not a company or a commercial partnership, but rather a contract that has three parties, “a person who is the settlor, who transfers some asset to another person who is called a trustee and that person manages this asset in benefit of a third party called a trustee”.

He said that this contract requires a specific trust law, because when it has essential characteristics, among which is the creation of a separate estate from whoever creates that trust and whoever manages it.

The trust can serve in different lines, such as the family succession, the business real estate trust and “the Condition is one more user of the trust is a public settlor who creates a trust for a public purpose”.

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