Dominican banks have been strong in the corporate sector but are still striving for the custom of a largely unbanked population, a vast number of microbusinesses and a share of the buzzing remittances market.John McCarthy reports.

The UK bank’s US exposure should only be a short-term liability and shareholders will again benefit once the economy rebounds.

A swift and sizeable capital injection by shareholders into ailing Banco del Progreso showed the private sector values the maintenance of a sound financial reputation.

Although the Dominican Republic has adopted a pragmatic policy of dealing with whoever furthers the national interest, the US will remain its most important partner.

With presidential elections in 2008, the political scenario is lively, but any new government will want to lock in economic improvements.

Diversification continues to be a hallmark of the Dominican economy and this, along with prudent financial management, helps explain the country’s marked turnaround, says John McCarthy.

Greater levels of securitisation or an equivalent of Fannie Mae are needed in order to overcome acute liquidity problems in Argentina’s mortgage market. Jason Mitchell reports from Buenos Aires.

Dr José Darío Uribe Escobar
Governor, Banco de la Republica de Colombia

María Antonieta Del Cid de Bonilla
Finance Minister (2004-2006), Guatemala

The North American Free Trade Agreement (Nafta) was intended, among other things, to improve Mexico’s economy (and thus reduce illegal immigration). In fact, it worked to the detriment of Mexico. Joe Stiglitz analyses what went wrong.