Dominican Republic Bonds Slump After President Pulls Tax Bill

Dominican Republic’s bonds fell after President Luis Abinader withdrew a bill that aimed to increase tax collection, dampening hopes the nation will be upgraded to investment grade.

Dollar notes paced emerging-market losses on Monday, with those maturing in 2060 losing as much 2.6 cents on the dollar to trade below 90 cents, according to indicative pricing compiled by Bloomberg.

Luis Abinader, Dominican Republic’s president.

Photographer: Jeenah Moon/Bloomberg

Abinader said on Saturday he pulled his proposed tax overhaul after recognizing it lacked enough support in Congress, according to a statement on the presidency’s website.

The measure was considered necessary to raise one of Latin America’s lowest ...