NewsWhore
04-09-2010, 05:20 PM
The International Monetary Fund reminded the Dominican Republic yesterday that it would have to go from a policy of expansion to a policy of budget re-adjustment in the second half of the year, according to what has been approved in the Stand-by arrangement. John Lipsky, first deputy managing director of the IMF said that in order to achieve this, the Dominican government would have to "quickly" eliminate the tax exemptions, improve tax management and control current expenditures while maintaining their plans for investments. Lipsky said that the government is going forward with a program to reform the electricity sector, which will in fact remove the subsidies on consumption and improve the service for customers. According to Lipsky, this reform will reduce the burden on public spending and open spaces for programs to fight poverty.
The economist also advised the government to gradually ease the restrictions on the exchange rate so that it can strengthen the country's capacity to resist outside shocks, especially if economic conditions at global level are worse than forecast. He added that the DR has behaved "satisfactorily" in the context of its credit program
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The economist also advised the government to gradually ease the restrictions on the exchange rate so that it can strengthen the country's capacity to resist outside shocks, especially if economic conditions at global level are worse than forecast. He added that the DR has behaved "satisfactorily" in the context of its credit program
More... (http://www.dr1.com/index.html#2)