JP MORGAN FORECAST ON DOMINICAN REPUBLIC PAYMENT.
DR SURE WILL DEFAULT PAYMENTS
The umbrella of the grace period is a bad signal.
The present is a free summary of the information released by Dominican newspaper Diario Libre.
The Dominican authorities requested an extension to start accommodations with the Club of Paris regarding the payment of the external debt of the Dominican Republic. The meeting for renegotiation of bilateral debt repayment was scheduled for march, and now it will take place on April. The experts of JP Morgan said that is a fact that the payment of the US$11-million due on 28 February for the PDI Brady Bond will not be made on time. They stress nevertheless that the Dominican Republic is entitled to a 15 days grace period.
According to Morgan, DR still has a considerable limitation on resources, giving rise to the theory that the Paris Club was putting a lot of Pressure over the Country to display its equal treatment with private investors. Morgan confirmed that the IMF recommended to DR to keep up to date in payments until it reaches an agreement with the Paris Club.
The postponement of accommodations until April, “further complicates the things”, because there is another payment in the amount of US$23.74 millions on the 06 bonds due on March 27 (with a 30 days grace period). Finally according to JP Morgan the late payments on 06 bonds would be used to negotiate with Paris Club. The goal is to postpone payments to private creditors, and odds are that private creditors will no receive more payments on 2004.
Thursday, March 04, 2004
COSTASUR DOMINICANA TO WITHHELD LUXURY TAX IVSS
In January, specifically the 27th, Direccion General de Impuestos Insternos, similar to Internal Revenue
Service enacted an special resolution converting Costasur Domnicana, S.A. in a sort of Agency in charge of collecting
the property tax or IVSS from owners. Therefore IVSS (property tax) is changing its form to a withholding tax. It is still a levy or contribution over the property but from this year Casa de Campo would be responsible for the collection of the levy. Consequently Costasur may charge the luxury tax (IVSS) directly to those clients with balances outstanding with Internal Revenue Office (even if they don’t want to pay the IVSS) because Costasur is liable to pay the property tax on its expenses. In other words Costasur is liable (jointly and severally liable) for owner’s obligations. The purpose of the resolution then, is to enable enforcement of legislation 18-88 relative to property tax or IVSS.
We may say: “then I am not going to pay the property tax through them I am going to do it by myself”, because I don’t consider appropriate to live my property on their free will. Or perhaps because you may think that they may retain the funds (I don’t think they can) and then do not report it to Internal Revenue Office. The answer is that yes you can pay the property tax directly to Internal Revenue Office. However in my opinion from now on it is almost impossible to default property tax payment; provided that Costasur is bound by the resolution above mentioned, in a short period of time if they are required to make a payment on behalf of an owner that went into default, they may cut out the services to this client, such as telephone, electricity, if said owner does not fulfill his obligations with respect to the property tax.
The resolution is no doubt against the Dominican constitution for a lot of reasons, but only in the event of a judgment from the Supreme Court against the resolution owners are bound by said, and so far I don’t see a loophole to bypass it.
In January, specifically the 27th, Direccion General de Impuestos Insternos, similar to Internal Revenue
Service enacted an special resolution converting Costasur Domnicana, S.A. in a sort of Agency in charge of collecting
the property tax or IVSS from owners. Therefore IVSS (property tax) is changing its form to a withholding tax. It is still a levy or contribution over the property but from this year Casa de Campo would be responsible for the collection of the levy. Consequently Costasur may charge the luxury tax (IVSS) directly to those clients with balances outstanding with Internal Revenue Office (even if they don’t want to pay the IVSS) because Costasur is liable to pay the property tax on its expenses. In other words Costasur is liable (jointly and severally liable) for owner’s obligations. The purpose of the resolution then, is to enable enforcement of legislation 18-88 relative to property tax or IVSS.
We may say: “then I am not going to pay the property tax through them I am going to do it by myself”, because I don’t consider appropriate to live my property on their free will. Or perhaps because you may think that they may retain the funds (I don’t think they can) and then do not report it to Internal Revenue Office. The answer is that yes you can pay the property tax directly to Internal Revenue Office. However in my opinion from now on it is almost impossible to default property tax payment; provided that Costasur is bound by the resolution above mentioned, in a short period of time if they are required to make a payment on behalf of an owner that went into default, they may cut out the services to this client, such as telephone, electricity, if said owner does not fulfill his obligations with respect to the property tax.
The resolution is no doubt against the Dominican constitution for a lot of reasons, but only in the event of a judgment from the Supreme Court against the resolution owners are bound by said, and so far I don’t see a loophole to bypass it.
PUNTA CANA GETS THE MOST VISITORS
SANTO DOMINGO. Almost half the total number of tourists who came to this country arrived through the Punta Cana airport, according to the most recent report of the Central Bank on tourists flow. This past January, 46.8% of the foreigners and non-residents who arrived in this country came in through that terminal.
Puerto Plata ranked second, having received 25.6% of the visitors during the first month of the year, whereas Las Americas terminal recorded 15.9%.
La Romana Airport mobilized 10.0%, and the remaining 1.7% came in through the Cibao and the Herrera terminals, according to the official report.
The report states that, although it took second place for the number of tourists mobilized, Puerto Plata is the most dynamic, with a growth of 26.0%. In Punta Cana, the increase amounts to 7.8%, but Las Américas, La Romana, Cibao and Herrera, reported a decline of 4.5%, 5.6%, 9.6% and 38.3%, respectively.
SANTO DOMINGO. Almost half the total number of tourists who came to this country arrived through the Punta Cana airport, according to the most recent report of the Central Bank on tourists flow. This past January, 46.8% of the foreigners and non-residents who arrived in this country came in through that terminal.
Puerto Plata ranked second, having received 25.6% of the visitors during the first month of the year, whereas Las Americas terminal recorded 15.9%.
La Romana Airport mobilized 10.0%, and the remaining 1.7% came in through the Cibao and the Herrera terminals, according to the official report.
The report states that, although it took second place for the number of tourists mobilized, Puerto Plata is the most dynamic, with a growth of 26.0%. In Punta Cana, the increase amounts to 7.8%, but Las Américas, La Romana, Cibao and Herrera, reported a decline of 4.5%, 5.6%, 9.6% and 38.3%, respectively.
PUNTA CANA RECIBE LA MAYORIA DE VISITANTES
SANTO DOMINGO. El aeropuerto de Punta Cana recibió casi la mitad de los turistas que visitaran el país, según el informe más reciente del Banco Central sobre el flujo turístico. El pasado mes de enero, por la terminal entró el 46.8% de extranjeros no residentes que arribó al país.
Puerto Plata quedó en un segundo lugar, al recibir el primer mes del año el 25.6% de los visitantes, mientras la terminal de Las Américas registró un 15.9%.
El aeropuerto de La Romana movilizó el 10.0% y el restante 1.7% le correspondió al Cibao y a la terminal de Herrera, consigna el reporte oficial.
A pesar de que ocupa el segundo lugar por cantidad de turistas movilizados, Puerto Plata muestra el mayor dinamismo, con un crecimiento de 26.0%, dice el informe. Rn Punta Cana el incremento suma un 7.8% pero Las Américas, La Romana, El Cibao y Herrera, registraron disminuciones de 4.5%, 5.6%, 9.6% y 38.3%, respectivamente.
SANTO DOMINGO. El aeropuerto de Punta Cana recibió casi la mitad de los turistas que visitaran el país, según el informe más reciente del Banco Central sobre el flujo turístico. El pasado mes de enero, por la terminal entró el 46.8% de extranjeros no residentes que arribó al país.
Puerto Plata quedó en un segundo lugar, al recibir el primer mes del año el 25.6% de los visitantes, mientras la terminal de Las Américas registró un 15.9%.
El aeropuerto de La Romana movilizó el 10.0% y el restante 1.7% le correspondió al Cibao y a la terminal de Herrera, consigna el reporte oficial.
A pesar de que ocupa el segundo lugar por cantidad de turistas movilizados, Puerto Plata muestra el mayor dinamismo, con un crecimiento de 26.0%, dice el informe. Rn Punta Cana el incremento suma un 7.8% pero Las Américas, La Romana, El Cibao y Herrera, registraron disminuciones de 4.5%, 5.6%, 9.6% y 38.3%, respectivamente.
Brazilian Company Buys 51% in PEPSI RD AND WILL ESTABLISH BREWERY
AmBevi is the number 1 brewery in that South American country and the fifth largest in the world.
SAO PAULO. AmBev, the largest beer company in Brazil, will expand its operations in Latin America after paying US$100 million for the control of the only distributor of Pepsico in the Dominican Republic, and for establishing a brewery.
AmBev will pay US$60 million for 51% of Pepsi shares in Embotelladora Dominicana CxA (Embodom), and it will eventually increase its participation to 66%, after establishing a brewery and contributing US$10 million more in cash. Embodom distributes Pepsi Cola, 7up, Mirinda, Red Rock and Mont Pellier water.
Scope
Juan Vergara, Ambev's International CEO considered that "the Dominican market is very promising." According to Ambev's estimations, the Dominican beer market is approximately 3.2 million hectoliters per year (35 liters per person, per year), and it generates over US$430 million.
Expansion
This agreement marks the beginning of AmBev's operations in the Caribbean. In the last three years, this company took over the major beer company in Argentina, Uruguay and Paraguay, introduced itself in Guatemala, and made investments in Ecuador and Peru.
AmBevi is the number 1 brewery in that South American country and the fifth largest in the world.
SAO PAULO. AmBev, the largest beer company in Brazil, will expand its operations in Latin America after paying US$100 million for the control of the only distributor of Pepsico in the Dominican Republic, and for establishing a brewery.
AmBev will pay US$60 million for 51% of Pepsi shares in Embotelladora Dominicana CxA (Embodom), and it will eventually increase its participation to 66%, after establishing a brewery and contributing US$10 million more in cash. Embodom distributes Pepsi Cola, 7up, Mirinda, Red Rock and Mont Pellier water.
Scope
Juan Vergara, Ambev's International CEO considered that "the Dominican market is very promising." According to Ambev's estimations, the Dominican beer market is approximately 3.2 million hectoliters per year (35 liters per person, per year), and it generates over US$430 million.
Expansion
This agreement marks the beginning of AmBev's operations in the Caribbean. In the last three years, this company took over the major beer company in Argentina, Uruguay and Paraguay, introduced itself in Guatemala, and made investments in Ecuador and Peru.
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