IMF supports DR

[NewsWhore]

The IMF is expressing its support for economic policies implemented by the Dominican government to help protect the economy from the effects of the economic financial crisis that began last September. The IMF is also praising the DR's ability to maintain exchange rate stability. In its review of the DR's post Stand-by Arrangement monitoring program, the IMF says that proper fiscal planning in 2009 will help ease external pressures and create a margin for monetary flexibility. The report says that the IMF is satisfied with the government's macroeconomic policies, which seek to rebalance fiscal and monetary policies, aiming to place the DR in a position to effectively deal with international financial concerns. The report highlights the capitalization of the nation's banks, their liquidity and their profitably and the fact that recent stresses have proved they can handle shocks to the markets, but warns that if external pressures continue the DR must be ready to apply even more flexible exchange rate policies. However, according to IMF projections, the DR's growth, represented by the GDP, will only total 1.8% due to external economic pressures. This is visibly lower than the 3% projection by Dominican authorities, and lower than the 4.8% and 8.5% economic growth registered in 2008 and 2007.

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