Page 1


Investment climate (1-6)

Economic Aspects(7-

Situation and Perspective

10) •


Politic aspects (1115)

2 0 1 0

> Investment Climate >Clima de Inversiones<

Legislative aspects (16-17)

1- Dominican Republic met successfully the goals of the agreement with the IMF

IN THIS ISSUE: Agreement with the IMF


Shell sells gas stations


Increase of commerce PR- DR


Costa Rica would go to WTO


DR will certify 300 enterprises


Confirmation of Albizu in 6 the Central Bank

The Dominican Republic closed the first phase of the evaluation of the monetary program contemplated in the stand- by agreement with the International Monetary Fund (IMF), with a successful compliance. It was so determined by the delegation of the multilateral financing organ on the 5th of August, after a meeting with the Government’s economic team that took place in the Central Bank.

the program was verified”, expresses the document. Also, it explains that in addition of the corresponding monetary and fiscal sector goals, aspects related to the electric sector such as the gradual dismount of the subsidies to the CDEEE were discussed, in whose participation Mr. Marranzini, participated actively. Published by: Newspaper Listín Diario.

“With respect to the recent evolution of the Dominican economy and the compliance with the goals established in the agreement, the successful compliance of the first phase of

Inflation in July was of 0.34%


Exports increase


DGA : collections increase


Government indexes 3.21% to fuels


Exchange rate


Baja el IPCof Leonel Ten years

12 12

Subsidio eléctrico New Chief of Police Turismo sigue creciendo Senate designates commission for choosing Recaudaciones de DGII judges aumentan Senate will consult with Tasa de Cambio PRD Entrevista entre LF y Reelection

13 13 14 14

17 16

3- IIBI: plataforma para la competitividad-país 3- Forecasts increase of commerce PR- DR

Captura de of Figueroa Challenges the new congress Candidaturas presidenPension funds

18 17

Legislación contra el clientelismo


La competitividad de las empresas dominicanas, en el Puerto Rico is ready to do business with marco the Dominican Repub-global, está garantizada en el Institude la apertura lic in a scenario of best partner and allyto and with a vision of de Innovación y Biotecnología e Industria (IIBI), a partir partnership with the business sector, said the past de on procesos deaugust investigación biotecnológica y de calidad 25th, the Minister of State of Puerto Rico,internacional Kenneth McClintock. reconocidos en Estados Unidos y Europa.

Aprueban consejos PJ y


15 15 16

19 18

Leyes crean “incentivos” 22 Ley de reestructuración mercantil


2- Shell sells its gas stations for 80 Million dollars The preliminary agreement by means of which the Dutch petroleum Shell Company sells to Dominican and foreign businesspersons its 186 gas stations established on a national level, entails an operation of some US$80 Million. The president Leonel Fernandez, whose government purchased and later sold to Venezuela the 49 percent of the shares of the petroleum company in the Dominican Petro-

leum Refinery (Refidomsa), was informed of the operation by executives of the parties involved in a meeting in the National Palace and in which officials from the government participated. The foreign investors that participated in the operation belong to the Peruvian multinational Sol. Published by: El Día Newspaper.

En el IIBI funciona In an intervention as invitee in the monthly breakfast of el theúnico laboratorio de República Domila certificación de la norma de calidad 17025, American Chamber of Commerce, the nicana Puertocon Rican official la cual garantiza el acceso a mercado de los productos th explained that by that disposition on June 28 , the Dominican quethe asuman esa certificación para entrar chancellor Carlos Morales Troncoso “andindustrializados I announced that sin problemas a los to países más exigentes del mundo, afirGovernor of Puerto Rico will direct a multi sector mission directora organismo, Bernarda Castillo. the Dominican Republic during the daysmó 13thlaand 14th ofdel October of 2010”. Publicado por: Periódico Listín Diario Published by: Newspaper El Caribe.




4- Costa Rica would go to WTO due to discrepancies with DR The Government of Costa Rica announced on August 11th that if through the means of dialogue the trade discrepancies that it holds with the Dominican Republic are not resolved, it is willing to go to the World Trade Organization (WTO). The Costa Rican Minister of International Trade, Anabel Gonzalez, declared in a press conference that the main problem is that the

Dominican Republic is applying safeguards to Costa Rican products, which goes against the Free Trade Agreement between Central America, the United States and the Dominican Republic (DRCAFTA). Published Caribe.




5- DR will certify 300 enterprises and close gap with Central America region A program by the National Council of Competitiveness (CNC) has as an objective to grant 300 certifications of quality to enterprises and public institutions in two years, to try to close the gap that separates the country from nations of Central America, where the levels of certification are greater than those of the Dominican Republic, which constitutes a disadvantage for the competitiveness. The details of the program “Quality to Compete” were offered by the director of the CNC, Andrés Vanderhorst Álvarez, who explained that the initiative in framed within the plan “Development of [Trade] Capacities in Support of the Sector Policies in the Area of Competitiveness” of the Dominican Government, sponsored by the European Union, through the General Administration of Multilateral Cooperation and executed by the CNC. Published by: Newspaper Hoy.

6- Confirmation of Albizu in the Central Bank receives Support The governor of the Central Bank was confirmed in the post by means of Decree 429-10. The business sector defined the 16th of August as a “positive signal” for the maintenance of the macroeconomic stability and the investment climate, the maintenance of the monetary authorities in the Central Bank (BC). The National Council for the Private Enterprise (Conep), the Association of Industries of the

Dominican Republic (AIRD), the economist Bernardo Fuentes, president of the firm Macrofinanzas; and Wadi Cano, president of the Association of Industrial Enterprises of Herrera (AEIH), among other business leaders, considered healthy for the economy the confirmation of Hector Valdez Albizu as governor of the Central Bank. Published by: Newspaper Listín Diario.

> Economic Aspects: 7-Central Bank informs that the inflation in July was of 0.34% The Central Bank reported on August 11th that the consumer prices in July increased 0.34% compared to June, which located the accumulated inflation rate during the first seven months of the year in 3.22%. According to the entity, the increase was caused basically due to the increase in the prices of transportation, which were affected by the movements in the price of petroleum in the interna-

tional market. With this result, the annualized inflation rate, measured from July 2009 until July 2010, reaches 5.67%. Published by: Newspaper Listín Diario.





8- Value of exports increase 11,8% The exports of the Dominican Republic increased an 11,8% during the first semester of this year in comparison with the same period of 2009, reported the Center for Export and Investment of the Dominican Republic (CEI-RD). According the report of the organ, the exports went from 2.235 Million dollars in 2009 to US$2.499 Million in the semester. The CEI-RD explained that the subsector of traditional products registered an increase of 31,2% in relation to the same period of 2009. Published by: Newspaper Hoy.

9– General Customs Administration (DGA): collections increase in six months The first semester registered a positive behavior for collections by the customs, which increased a 3% above what was budgeted for that time period, as reported yesterday by Rafael Camilo, Director of the General Customs Administration (DGA). The official hopes that the tendency will continue for the second semester and allocated the increase to what has been collected due to the putting into operation of a program of efficiency and control, as well as due to a greater assessment ex post of the imports, which has permitted that the importers adjust to the norms and comply with the law.

Published by: Newspaper El Caribe.

10-Government indexes 3.21% to tax on fuels The government has applied two prorate quotas to the indexation or adjustment due to inflation to the tax on fuels, correction that for the case of fuels represents 3.21 and 3.20 percent. For the case of the premium and regular fuels, the tax subject to the indexation of adjustment due to inflation, which was created under Law 112-00, has been increased in RD$1.52 and RD$1.34 per gallon respectively. The Minister of Finance, which is

the organ that brought the debate over the topic of indexation to fuels, said on the past month of July, that since 2007 the government did not apply the adjustment due to inflation to fossil fuels, and that due to that decision it had accumulated an approximate amount of RD$9.00 per gallon. Published by: Newspaper El Caribe.

11– Exchange rate and fuel prices:

During the course of the month of august, the Dollar of the United States has remained between RD$ 36.87 and RD$ 36.91, while the euro has remained between the RD$ 45.43 and RD$47.70. With respect to gasoline, the price of the gallon of Premium until september 5th was of RD$160.60 and the price of the gallon of regular was RD$150.90.

“Exchange rate and gasoline prices”





> Politic Aspects < 12- Achievements and failures in the ten years of Leonel After celebrating on the next 16th of August 10 years of Government, the last six in a consecutive manner, the president Leonel Fernandez becomes the fifth president that for the longest time has governed the nation and among them the most democratic, but, as has been the tradition, with a high clientelism and founded on the construction of steel rod and cement infrastructure. It is considered that the stability and the macroeconomic growth, the extension of the foreign relations and the construction of vital public works are its greatest accomplishments,

but that it has failed in the priorities of education, electric energy, competitiveness, public security, transparency and the fight against corruption and drug trafficking. Another long leadership. Although it arrived to power with a party that placed itself in the political left and without government experience, Doctor Leonel Fernandez has achieved the construction of a new national leadership of conservative essence that is projected beyond the end of its third period of four years in 2012. Published by: Newspaper Hoy.

13-Designates new Chief of Police; change of military command The President of the Dominican Republic designated on August 16th as new minister of the Armed Forces the now general lieutenant Joaquin Virgilio Perez Féliz; as chief of the National Army he designated the mayor general Carlos A. Rivera Portes, and as chief of the Dominican Air Force, designated the major general Israel Aníbal Diaz Peña. The controversial major general Rafael Guillermo Guzman Fermín was removed as chief of the National Police. In his place, the President designated the major general José Armando Polanco Gomez. Guzman Fermín is now adviser on police matters of the Executive Branch. The Chief of State also put into retirement 19 generals: 9 from the Police, 6 from the Army, 3 of the Air Force and one from the Navy. Published by: Newspaper Hoy.

14– The Senate designates commission for choosing Central Electoral Board judges The new Senate of the Republic began sessions on August 25th and immediately opened the competition among the aspiring candidates to be judge of the Central Electoral Board (JCE). At least ten senators performed for the first time yesterday in a session in which the Senate formed a special commission that will prepare a report for the selection of the new members of the electoral organ.

the vice-president of the Senate, Cristina Lizardo, the vocals of the group of congressmen of the Dominican Liberation Party (PLD) and Reformist Social Christian Party (PRSC), Felix Nova and Felix Vasquez, respectively; as well as the senators Julio César Valentín, Francis Vargas, Rubén Darío Cruz and José Rafael Vargas. Published by: Newspaper Listín Diario.

The commission will be headed by

15– Pared Perez affirms will consult with PRD The reelected president of the Senate, Reinaldo Pared Perez, assured yesterday that although the Dominican Revolutionary Party (PRD) does not have representation in the Senate it will be consulted over topics of national interest. Also, the new President of the Chamber of Deputies, Abel Martinez, at the time of taking possession of the post, indicated that, due to the great amount of work that this new congress will face looking forward, it is necessary that it legislates in the framework of political pluralism and democracy, where the coordination and consensus serve as the fundamental axis. Published by: Newspaper El Caribe.





16–The Reelection arrived to Congress The headquarters of the National Congress, where 32 senators and 183 deputies were sworn in, became yesterday the scenario of the promotion of the presidential reelection of Leonel Fernandez, in the middle of picturesque events.

debate on whether with the current Constitution he could be a candidate. Published Caribe.




As the senators and deputies that were sworn in for a period of six years arrived, also a group of young persons, of different sectors of the population started arriving carrying portable signs, promoting the presidential reelection of Leonel Fernandez for the year 2012, although there is a

>Legislative Aspects< 17– The challenges of the new congress When on Monday August 16 the new National Congress is installed, the legislators will have looking forward several tasks pending resolution, or a pack of important draft bills that due to several reasons where not sanctioned in the past legislatures and remained stuck until further notice. The update of the national legal framework to the new constitutional text enacted on the past January 26, the draft bill of Groupings and Political Parties and the amendments to the Codes of Criminal Procedure, Minors, and Penal Code, are expected to be the legislative draft bills that will occupy the most time of the legislative works. Topics in the legislative agenda Law of Political Parties and Groups

The discussion to provide the political system with an instrument that regulates matters such as the financing of campaigns and the use of State resources to favor the Government in turn started in 1999. The approval of this draft bill has been postponed in different occasions, although in May of 2009 it formed part of the agreement signed by the President Fernandez and the President of the Dominican Revolutionary Party (PRD), Miguel Vargas. Legal Framework of the Constitution The adaptation of the laws, norms and resolution in force of the Carta Magna will likely be the most arduous work of the legislators.

18– The Government will not use pension funds The Central Bank announced on August 12 that the draft bill for the Development of the Mortgage Market and the Trust does not include instruments from the Government to Access to the pension funds, as has been reported in some media sources. In an analysis over the draft legislation, whose technicians of the Central Bank participated in its drafting, the monetary institution emphasized that the bill creates a

series of figures and investment instruments, such as mortgage letter of credit, mortgage bonds, covered bonds, securitized instruments and trust instruments. Published by: El Caribe Newspaper.

Changes to the Code of Criminal Procedure The reform of the Criminal Procedure Code has probably been the most sought request. The demands that such legislation be amended, has arisen from the situation of insecurity and the increase of the criminality that affects Dominicans. Amendment to the Code of Minors The Code of Minor is awaiting amendment in the Congress. Diverse segments of society argue that the sanctions that it contemplates are not directly proportional with the punishable actions realized by offending adolescents. Published by: El Caribe Newspaper.


Russin, Vecchi & Heredia Bonetti

We are a law firm pioneer in the Dominican Republic in offering specialized services to a business community interested in the global economy, with the highest international standards of services, probity and professional excellence.

Calle El Recodo #2, Edificio Monte Mirador

We are also one of the most recognized and experi-

Tercer Piso

enced law offices, dedicated to facilitate the estab-

TelĂŠfono: 809-535-9511

lishment of foreign investments with a well earned

Fax: 555-565-6649 E-mail: Web:

reputation as a good corporate citizen for our contribution to the improvement of the business climate and our support to the continuing education of professionals of the Law.

Situacion y Perspectiva Agosto  

Ver Ingles