NewsWhore
12-09-2008, 03:40 PM
Central Bank governor Hector Valdez Albizu has announced that the DR will sign a post-program monitoring agreement with the International Monetary Fund, following the completion of the three-year Stand-by Arrangement in January 2008. The DR's Letter of Intent will be reviewed by IMF managing director, Dominique Strauss-Kahn, on 12 January. Strauss-Kahn was in the DR yesterday as part of a Central American and Caribbean tour, and he met with President Leonel Fernandez and his economic team at the Presidential Palace.
Strauss-Kahn spoke after his meeting with Fernandez, saying that the DR is doing well within the context of a very serious global financial crisis, as reported in Listin Diario.
In an official release on the meeting in the DR, Strauss-Kahn said:
"Our discussions focused on the dual challenge facing the Dominican Republic at this difficult time: the need to return to a financially viable fiscal position in the face of tight world credit markets, while ensuring that macro-economic policies do not exacerbate an emerging slowdown in economic activity. There was broad agreement on the need to rebalance macro-economic policies by reducing the fiscal deficit, as proposed by the authorities, to allow some easing of monetary policy and lower interest rates to help spur private sector activity. Over the medium term, improving economic welfare will hinge on accelerated employment creation and income growth that will be enhanced by a further gradual but steady reduction in the public debt ratios."
He called for close supervision of the financial sector given the difficult times, but stressed that the Dominican financial sector is robust: "On this front, bank indicators are favorable, suggesting a well-capitalized, liquid and profitable banking system that should be well-positioned to withstand current adverse external conditions. The policy objectives for 2009 should contribute significantly to allow the Dominican economy to weather the current global economic crisis."
A joint IMF and World Bank mission is scheduled for early 2009 to conduct an update of the financial sector assessment program, which should further aid the Superintendence of Banks to strengthen its efforts to ensure that the financial sector becomes a major strength of the economy.
More... (http://www.dr1.com/index.html#2)
Strauss-Kahn spoke after his meeting with Fernandez, saying that the DR is doing well within the context of a very serious global financial crisis, as reported in Listin Diario.
In an official release on the meeting in the DR, Strauss-Kahn said:
"Our discussions focused on the dual challenge facing the Dominican Republic at this difficult time: the need to return to a financially viable fiscal position in the face of tight world credit markets, while ensuring that macro-economic policies do not exacerbate an emerging slowdown in economic activity. There was broad agreement on the need to rebalance macro-economic policies by reducing the fiscal deficit, as proposed by the authorities, to allow some easing of monetary policy and lower interest rates to help spur private sector activity. Over the medium term, improving economic welfare will hinge on accelerated employment creation and income growth that will be enhanced by a further gradual but steady reduction in the public debt ratios."
He called for close supervision of the financial sector given the difficult times, but stressed that the Dominican financial sector is robust: "On this front, bank indicators are favorable, suggesting a well-capitalized, liquid and profitable banking system that should be well-positioned to withstand current adverse external conditions. The policy objectives for 2009 should contribute significantly to allow the Dominican economy to weather the current global economic crisis."
A joint IMF and World Bank mission is scheduled for early 2009 to conduct an update of the financial sector assessment program, which should further aid the Superintendence of Banks to strengthen its efforts to ensure that the financial sector becomes a major strength of the economy.
More... (http://www.dr1.com/index.html#2)