NASD MSRB Issue Joint Statement Pledging Cooperation to Harmonize Mutual Fund 529 Plan Sales Rules

com/529JointStatement and on the MSRB's web site at
http://www.asp. Approximately US$456 million aggregate amount of
9.4% in 2004, supporting the 'B-' rating of
the new bonds.
"In addition to the positive economic benefits of CAFTA-DR for the U.
FPA's laboratory centers, scientists and professional staff provide technical
and regulatory assistance to member companies and represent the food industry
on scientific and public policy issues involving food safety, food security,
nutrition , consumer affairs and international trade.

sovereign subsidies

The MSRB and NASD believe the two organizations have been successful in
implementing substantially comparable safeguards with respect to sales
practices in both the mutual fund and 529 Plan marketplaces. In their joint
statement issued today, they further pledged that:

* The MSRB will adopt rules and interpretations concerning 529 Plans
that are equivalent to NASD rules and interpretations concerning
mutual fund sales practices adopted in the future.com. However, other fundamental credit concerns remain."

The Food Products Association (FPA) is the largest trade association
serving the food and beverage industry in the United States and worldwide.

establishing regimes

G. With this as a backdrop, Fitch would consider a Positive
Outlook or even an upgrade of the ratings in the medium-term. Similarly, the Dominican Republic's country
ceiling and the ratings on Brady bonds, which were also not eligible
for the exchange , have been upgraded to 'B-'.
The exchange has improved the Dominican Republic's near term
credit profile due to the significant debt service relief achieved in
2005 and 2006.

fora orderly

* The MSRB and NASD will cooperate and coordinate any response to a
request for information on rulemaking by the SEC concerning 529 Plans.

NASD is the leading private-sector provider of financial regulatory
services, dedicated to investor protection and market integrity through
effective and efficient regulation and complementary compliance and
technology-based services.

monetary orderly

"
Amelia A. Improving export prospects, which in turn
could benefit reserve growth beyond 2006 , will also be dependent upon
the eventual approval of CAFTA, a process which is becoming an
increasingly uphill battle in both the United States and some of the
prospective member countries of CAFTA.

monetary harmonization

Need for Regulatory Consistency, Investor Protection Cited

WASHINGTON, Citing benefits to investors and a
desire to foster regulatory consistency, NASD and the Municipal Securities
Rulemaking Board (MSRB) today formally pledged continued cooperation to assure
that their respective rules governing mutual fund sales and 529 College
Savings Plan sales are harmonized.S.

sovereign fora

NASD enforces
the MSRB 's rules with respect to non-bank broker-dealers.
"Harmonization of MSRB rules and interpretations applicable to sales
practices for 529 Plans and NASD rules and interpretations applicable to sales
practices for mutual funds has the dual benefits of protecting investors in
both markets under similar standards, and subjecting municipal securities
dealers to similar regulations irrespective of whether the product being sold
is a 529 Plan interest or shares in a mutual fund," the joint statement says.

The joint NASD-MSRB statement can be accessed on the NASD's web site at
http://www .

The MSRB was established in 1975 by Congress as a "functional" or
"product-line" self -regulatory organization to develop rules regulating
broker-dealers and banks involved in underwriting , trading, and selling
municipal securities. If the government is committed
to servicing the eligible bonds not extinguished with the exchange on
time and in full, the default ratings will be removed on 6 June 2005. In addition, medium-term export growth prospects remain below
average due to the expiry of textile quotas under the WTO's Agreement
on Textiles and Clothing and the short-lived gains in competitiveness
from the devaluation.
food products industry, the agreement also establishes a forum for addressing
technical and sanitary concerns, which will help ensure the safety of food
products in international trade.

wto norms

Taylor, MSRB Executive Director, added,
"We believe that the joint statement will facilitate our two organizations'
efforts to ensure that future challenges facing investors in both marketplaces
can be addressed in a unified manner.
As local currency obligations were excluded from the debt exchange and
the government's liquidity position has improved as a result of the
exchange, the long-term local currency (Dominican peso) rating has
been upgraded to 'B ' from 'CCC+'.

stability harmonization

"
As the primary private-sector regulator of the securities industry, NASD
writes and enforces rules governing sales of securities, including mutual
funds. The MSRB does not have rulemaking authority with respect to the
activities of issuers of municipal securities.msrb. Following the rating action, the
Rating Outlook is Stable. While it appears that quantitative performance
criteria and indicative targets should be easily met, Fitch remains
concerned with the authorities' ability to stay on track with
structural performance criteria and benchmarks given past
difficulties.

2 billion.
Nevertheless, maintaining improvements in public finances and
strengthening the financial system will require significant structural
reforms, a process that could be complicated by the 2006 upcoming
congressional elections. For our industry,
global trade is an essential part of doing business and as the largest trade
association serving the processed food and beverage industry in the United
States and worldwide, we will continue to help foster an environment, both
domestically and abroad, that facilitates trade for processed food and
beverage products.

monetary orderly

It regulates the activities of more than 5,100 broker-dealers and
650,000 brokers. Municipal securities include bonds and notes issued by
states, cities, and counties or their agencies to help finance public
projects, as well as interests in 529 Plans and other municipal fund
securities.2% of GDP in 2005 from 8.

intergovernmental regimes

50% amortizing bonds due 2011 and US$574 million aggregate amount of
9.

Multilateral governance is the process of establishing and regulating norms among sovereign states.

multinational orderly

"The
cooperation between the MSRB and NASD to make their rules consistent is a
model for how regulators with interrelated responsibilities can serve
investors.
Fitch deemed the exchange offer to be a distressed debt exchange
and downgraded the eligible bonds and the long-term foreign currency
issuer rating to 'DDD' on 5 May 2005. Similarly , debt service could increase to around US$1
billion in 2006, compared with forecasted reserve levels of US$1.

The institutions of multilateral government represent the backbone of international cooperation , providing fora where world leaders may discuss current issues, where international law may be developed , and/or where states may coordinate joint operations.

opec establishing

J.

FPA Applauds Passage by the House of Representatives of CAFTA-DR

The countries
in the CAFTA-DR region are truly a ready-made market for our country 's food
exports.
"FPA has actively worked for passage of CAFTA-DR.

coordinate trafficking

* The MSRB will work with state issuers of 529 Plans to encourage and
facilitate any action by them necessary to assure regulatory
consistency.

monetary sovereign

org/msrb1/whatsnew/JointStatement.S.

coordinate subsidies

" Christopher A. The MSRB develops rules governing broker-dealers and dealer
banks that underwrite, trade and sell municipal securities, including
interests in 529 Plans. For more information, please visit
our Web Site at http://www.
Should the Dominican authorities meet the performance criteria
included in the country's International Monetary Fund (IMF) program
and pursue sound macroeconomic policies , multilateral financing should
be assured and the government's liquidity position would remain
stable .

unpo multinational

Any additional disbursement delays could make meeting
even modest debt service requirements challenging as the public
sector's external debt service could still be upwards of US$829
million this year compared with international reserves of around
US$1.8
billion.
"FPA joins with a host of food and agriculture organizations in thanking
the U.

regulating opec

msrb. WASHINGTON, Commenting on the passage by the U.

harmonization unpo

MSRB rules are enforced by
NASD in the case of broker-dealers and by the Federal Deposit Insurance
Corporation, the Federal Reserve Board and the Comptroller of the Currency in
the case of banks.org/msrb1/mfs.

Correction: Fitch Rates Dominican Republic's New Bonds 'B-'

04% amortizing bonds due 2018 are affected by this rating action.
Meeting the sovereign's debt service requirement remains contingent
upon complying with the performance criteria contained in its Stand-by
Agreement with the IMF.S.
agricultural products, including processed foods and beverages.S.

regulating unpo

Noting that 529 Plan interests have many of the same characteristics as
mutual funds and that 529 Plan sales raise the same general types of sales
practice issues as mutual fund sales, a joint statement issued by the two
self-regulatory organizations today says the "harmonization of MSRB rules and
NASD rules would further protect the investing public. Bond, MSRB Chairman and Senior Vice President and Director of
the Public Finance Department at A.
House of Representatives of the Free Trade Agreement with Central America and
the Dominican Republic (CAFTA-DR), Cal Dooley, President and CEO of the Food
Products Association (FPA), made the following remarks:

"The Food Products Association applauds the House for approving CAFTA-DR.
This historic Agreement will provide new market opportunities for U.

establishing stability

, stated, "This
joint statement reinforces our long-standing commitment to putting in place
effective customer protection rules for the benefit of individual investors in
the 529 Plan market . Most municipal securities dealers subject to MSRB
regulation are also licensed broker-dealers regulated by NASD. NASD touches virtually every aspect of the
securities business -- from registering and educating all industry
participants, to examining securities firms, enforcing both NASD rules and the
federal securities laws, and administering the largest dispute resolution
forum for investors and registered firms.

wco regimes

Glauber. Moreover, CAFTA-DR will foster economic
stability and regional cooperation .

norms migrant

Edwards + Sons, Inc. In the event that
the MSRB finds an NASD mutual fund rule to be prohibited by law or
inappropriate as a result of fundamental differences between mutual
funds and 529 Plans, the MSRB will adopt any permissible and
appropriate portions of that rule and adopt, when possible,
alternative rules and interpretations providing substantially
equivalent investor protections.

* The MSRB and NASD will each provide the other with an opportunity to
comment on relevant proposed regulations and interpretations
concerning 529 Plans and mutual funds before they are published or
filed with the Securities and Exchange Commission (SEC).nasd. Information about MSRB regulation of the activities of
broker -dealers and banks in connection with 529 Plans is available at
http://www.
Stronger than expected fiscal results and economic growth during
the first quarter of this year as well as the debt restructuring ,
could reduce the public sector's total financing needs to an estimated
4. Senate and House of Representatives for their action to pass this
important trade agreement.

francophonie migrant

A comparatively orderly exchange undertaken with the
support of the IMF and official bilateral creditors, while at the same
time remaining current on its obligations to bondholders, signals the
Dominican authorities' commitment to make best efforts to normalize
relations with creditors.

establishing coordinate

"
"Investors have a right to expect that products that look the same are
regulated the same way -- and mutual funds and 529 Plans look as much alike as
oranges and tangerines," said NASD Chairman and CEO Robert R.nasd .

Business Editors

NEW YORK----(This is an amended
version of a press release issued yesterday and contains revised Brady
bonds information in the second paragraph.)
Fitch Ratings -NY-May 12, 2005: Fitch Ratings, the international
rating agency, has assigned long-term foreign currency ratings to the
new bonds issued by the Dominican Republic as a result of its debt
exchange of 'B-'.

orderly migrant

---

- - kjjkjk

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