NewsWhore
10-13-2010, 03:40 PM
Next week, the Executive Board of the International Monetary Fund (IMF) will study the Letter of Intent (LOI) sent by the Dominican government for the approval of the second and third reviews of the Stand-by arrangement.
Diario Libre says that the review of the LOI had been set for next Monday 18 October, according to the multilateral financial organization's agenda, but it was taken off the agenda and postponed until Wednesday, 20 October, according to official sources.
On 9 November 2009 the Executive Board of the IMF approved a Stand-by arrangement for 28 months for the sum of US$1.09 billion in Special Drawing Rights (SDR)oapproximately US$1.7 billion - with the Dominican Republic, to support the strategy adopted by the country to deal with the adverse effects of the world economic crisis. The objectives of the program adopted by the authorities are the following: application of anti-cycle policies in the short term, strengthen sustainability in the medium term, reduce the vulnerabilities exposed during the world crisis and establish the basis for a gradual recovery and sustained growth. The agreement aims to strengthen confidence within the framework of the economic policies.
Economist Bernardo Fuentes of www.economi-k.com (http://www.economi-k.com) says the review is important because it reduces the perception of country risk, especially since the second review should have been approved in June and that didn't happen. He mentions that economic agents see these delays as a response to the country's failure to meet targeted objectives. Furthermore, he reports that the approval will mean the disbursement of some US$230 million that will strengthen the international reserves position of the Central Bank, reducing the exchange risk.
More... (http://www.dr1.com/index.html#4)
Diario Libre says that the review of the LOI had been set for next Monday 18 October, according to the multilateral financial organization's agenda, but it was taken off the agenda and postponed until Wednesday, 20 October, according to official sources.
On 9 November 2009 the Executive Board of the IMF approved a Stand-by arrangement for 28 months for the sum of US$1.09 billion in Special Drawing Rights (SDR)oapproximately US$1.7 billion - with the Dominican Republic, to support the strategy adopted by the country to deal with the adverse effects of the world economic crisis. The objectives of the program adopted by the authorities are the following: application of anti-cycle policies in the short term, strengthen sustainability in the medium term, reduce the vulnerabilities exposed during the world crisis and establish the basis for a gradual recovery and sustained growth. The agreement aims to strengthen confidence within the framework of the economic policies.
Economist Bernardo Fuentes of www.economi-k.com (http://www.economi-k.com) says the review is important because it reduces the perception of country risk, especially since the second review should have been approved in June and that didn't happen. He mentions that economic agents see these delays as a response to the country's failure to meet targeted objectives. Furthermore, he reports that the approval will mean the disbursement of some US$230 million that will strengthen the international reserves position of the Central Bank, reducing the exchange risk.
More... (http://www.dr1.com/index.html#4)