In May 2024, the Dominican Republic owed 7,640.8 million dollars to financial entities multilateral institutions, including banks from which it can request multimillion-dollar loans for budget execution, with more favorable credit conditions for public finances.
To access those creditsrequest support or maintain its position in multilateral cooperation agencies and organizations, the country makes capital contributions. These large amounts dues amount to at least 15,322.9 million pesos in the last 15 years, according to official data.
Although it does not top the list of Dominican contributions, the Inter-American Bank Development (IDB) remains as the main creditor multilateral of the nation.
With more member countries than other multilateral credit agencies, the IDB has a larger portfolio for to finance large amounts to nations such as the Dominican Republic.
As of last May, Quisqueya owed 4,087.9 million dollars to the IDBas long as he had contributed 27.5 million dollars to its capital (1,325 million pesos) between 2008 and 2023, according to the Ministry of Finance. Free Newspaper.
- The multilateral organizations They are supported by contributions and trust funds from their partners, as well as by indebtedness in international capital markets. With these resources they can sign contracts for consultancy, supply of goods and construction.
Of the 15,322.9 million pesos capitalized by the Dominican Republic Between 2008 and 2023, 93.73% went to financial entities multilateral such as the Development Bank of Latin America and the Caribbean (CAF), he IDBthe Central American Bank for Economic Integration (CABEI) and the world Bank.
By May of this 2024, it was owed to CAF about 428.2 million dollars. Between 2008 and 2023, the Dominican contribution of capital to that bank amounted to 187.2 million dollars (9,505.2 million pesos), equivalent to 66.18% of the contributions to financial entities similar, according to Treasury data.
“When the country contributes capital to multilaterals, it has access to greater financing for Projects of investment and budget support with better conditions, when compared with other sources of financing“, it is explained to Daily Bookand from the Treasury.
It is noted that the nation benefits from initiatives of economic development and social of these multilateral organizations, as well as cooperations non-refundable. “Having greater share shareholder, the country also participates in decision-making,” he says.
With financing of the IDBthe Dominican Republic obtained resources for the purchase of vaccines and the response plan to the COVID-19 pandemic. The Port of Manzanillo is also being rehabilitated and expanded and investments are being made in Projects social, sanitation, technological and private.
He world Bank supports different initiatives to promote the national energy transition, while the French Development Agency contributes funds for the extension of the Santo Domingo Metro and CAF supports programs of financing to development through the Development Bank and Exports, among others.
“Savior banks“
In September 2023he Minister of FinanceJosé Manuel -Jochi- Vicente, reported that the Dominican Republic was incorporated as a member country of CAFgoing from having series C shares to series A shares.
At that time he stressed that the incorporation opened the doors to greater access to technical assistance and financing of Projects at more favorable rates.
A publication of the IDB He compares multilateral banks’ loans to an umbrella on rainy days. He says that “in cases where it is not raining but pouring (severe crises in which the IMF intervenes),” these banks “continue to function as a system and provide financing to governments in trouble.”
The country pays, but it also delays
Dominican contributions to international organizations must be made on specific dates, however, They usually register delays.
According to data provided to Free Newspaper for him Ministry of Economyin 2014 alone, 63,599,074.26 pesos were transferred to the Organization of the United Nationscorresponding to the minimum payment of the debt accumulated by the Dominican Government with said organization.
In total, at United Nations 459,301,442.03 pesos were contributed between 2008 and 2013, making this organization the one that was paid the most of all multilateral organizations of its kind, monopolizing the 70 %.
In 2018, 15,526,859.90 pesos were transferred to the Program of the United Nations for Development (UNDP) to cover the share from the previous year.
Likewise, 20,411,205.47 pesos paid in 2020 to Caribbean Export corresponded to the membership 2017-2020 and proportion of subregional office income.
In addition, another amount of 10,079,758.80 pesos disbursed in 2022 settled the entire debt. dues earrings of 2020 and 2021, and a payment to the obligations of the same 2022.
The cooperation agreements and of financing international must be approved by the National Congress. According to the Treasury, they constitute a commitment of the Dominican State with these institutions, which must be included in the General State Budget annual for payment purposes.
