Dominican president inaugurated

Fernandez warned Dominicans that austerity lies ahead

The new president of the Dominican Republic, Leonel Fernandez, has been sworn in following his election in May.

He took the oath of office during a ceremony in the capital, Santo Domingo, attended by regional leaders.

Mr Fernandez, 50, promised to slash spending, in an effort to tackle the country's economic crisis.

The Dominican Republic - which shares the same island as Haiti - has been hit by high inflation and unemployment following a banking scandal last year.

Mr Fernandez was head of state between 1996 and 2000.

Analysts say there is nostalgia among Dominicans for the relative prosperity of those days.

Belt-tightening

During his inaugural address in Congress, Mr Fernandez said he would preside over "a period of austerity".

No one will be able to use public funds to buy new jeeps or make cellular phone calls President Leonel Fernandez

He promised to cut government spending by 20%, saying many positions created during the past administration would be eliminated.

"No-one will be able to use public funds to buy new jeeps or make cellular phone calls," he said.

As he was speaking his predecessor Hipolito Mejia sat impassively.

The new government will inherit $6bn in foreign debt and an inflation rate of 16%.

A third of the Dominican Republic's workforce is unemployed and its currency has lost half of its value against the dollar.

Foreign leaders attending Monday's ceremony included the presidents of Uruguay, Colombia and Brazil.