The legislature approved a law that extends the tax treatment of debt issued by the Dominican central government, making debt instruments issued by the Dominican Republic more attractive to investors.  The Minister of Finance, Vicente Bengoa Albizu, lauded the recent passage of the law saying that investors may use these obligations to pay any type of obligation contracted with the Government, whether it is the payment of taxes, debts, or other types of obligations.

This innovation aims to increase the investors' confidence in these instruments, to obtain more cost effective financing for the Government and to promote the development of the country's capital market.

The new law applies to all debt instruments authorized by the Legislature, starting with the laws 490-08 and 498-08 of Public Income and Expenditures Budget Law for 2009.  The 498-08 covers all bonds issued through the Ministry of Finance's monthly public auction  coordinated through the Public Debt Office.