Wow.

General strike threat in the Dominican Republic

Unions in the Dominican Republic have scheduled a 48-hour national strike for January 28 to protest the signing of an austerity agreement between the government of President Hipolito Mejia and the International Monetary Fund (IMF). In return for a US$600 million loan, the Meija administration has agreed to severe budgetary restrictions.

On January 23, Ray Guevara, the labor minister, denounced the threatened strike call, saying it would be “destabilizing” in view of the fact presidential elections are set for May 16, only a few months away. Guevara noted that some political groups supporting the strike are also calling for Mejia’s resignation.

The economic crisis affecting the Dominican Republic has caused the value of the peso to plummet since January, falling from 38 to 52 per dollar. Inflation for 2003 was 43 percent. The country has also been hit by a banking scandal; a major bank collapsed and two others are near bankruptcy as a result of embezzlement by bank executives.

Some other highlights:

The peso has tumbled as investors have pulled their money out of the country and in November Dominicans took to the street to protest the government's economic policies.

The depreciation of the Dominican currency has accelerated since the government earlier this month abandoned efforts to force the exchange rate down to 30 pesos per dollar through a military-dominated council and other measures.

President Hipolito Mejia, under pressure over the economic slump that followed the bank's collapse and over his own plans to seek reelection this May, said the currency controls were ended at the insistence of the IMF.

Figuerola said the IMF also welcomed the central bank's efforts to keep inflation down.

"The Central Bank has, this week, raised its policy interest rates to make them generally positive in real terms, and we welcome this action which will be further supportive of the authorities' inflation-control efforts," the IMF said.

The IADB said it would shortly be considering an emergency $200 million loan for the country. The IADB normally waits for the IMF to give its nod of approval before giving countries new loans.



http://www.reuters.com/financeNewsArticle.jhtml?storyID=4181477&type=bondsNews

Are chica prices are being adjusted for inflation?

Thinking about possibly relocating to the D.R. from San Diego. I go to T.J. about 3 times a week. and have heard good things about the D.R. I could sell my house here and make some good money, and from what I have seen I could buy a decent place on the North coast for about 90- 120K. I have researched a little around Sosua, and Cabarete. Anyone with good knowledge of the D.R. {crime, banking,bribery,cost of living,cops, and of course chicas} would be appreciated. Also someone with a little real estate info would be helpful. would probably go down for about 3-4 months, and look around and check it out, and then buy if it turns out o.k. I am 57, whiite, and single. and retired. thanks Retcond

There are a number of real estate sites dealing specifically with the north coast of the DR. There are listings from $30k condos to multimillion dollr mansions. Here is a link to THE real estate site of all real estate sites. Pick your country and start fantasizing.

http://www.internationalrealestatedirectory.com/