NewsWhore
07-14-2011, 11:00 AM
Expectations are that the International Monetary Fund (IMF) board of directors will approve the fifth and sixth reviews of the 28-month Stand-By Arrangement (SBA) dated November 2009. The SBA approved for the DR SDR1,094.5 million on 9 November 2009. The disbursements are subject to periodic reviews.
Meanwhile, in an Executive Summary issued following the conclusion of the Fourth Review under the SBA and Request for Waiver of Nonobservance of Performance Criterion issued by the IMF in a press release on 13 July, the organization shares its appraisal that its staff supports the request for the waiver and the completion of the fourth SBA review in view of the positive macroeconomic results and satisfactory performance.
As reported by the IMF, the main objective of the Dominican economic authorities' program is to limit pro-cyclical policies in the short-run while strengthening debt sustainability and growth prospects over the medium-term through a combination of fiscal consolidation and a deepening of the structural reform agenda.
The IMF staff team highlights that the macroeconomic performance continues to be very positive in the Dominican Republic, but alerts that the risk of overheating is rising. The economy expanded 71?2 percent in the 12 months to September 2010 (yoy), after reaching near- stagnation in mid-2009. Staff estimates that the output gap is closing rapidly. As reported, there was an uptick in inflation in September and October but headline inflation remains contained at 61?4 percent in October 2010 (yoy), against a target of 6n7 percent for the year; core inflation stood at about 41?4 percent in October 2010 (yoy). The external current account deficit has widened somewhat more than expected and is heading for 71?2 percent of GDP in 2010.
Already by the fourth review, the IMF acknowledged that with the first part of the program successfully implemented (naming fiscal accommodation), the authorities would focus on implementing the second part said to involve a gradual fiscal consolidation.
In June 2011, the Dominican authorities would authorize increases in electricity tariffs as well as increased taxation, as work proceeded for the approval of the fifth and sixth reviews of the SBA.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25041.0
More... (http://www.dr1.com/index.html#2)
Meanwhile, in an Executive Summary issued following the conclusion of the Fourth Review under the SBA and Request for Waiver of Nonobservance of Performance Criterion issued by the IMF in a press release on 13 July, the organization shares its appraisal that its staff supports the request for the waiver and the completion of the fourth SBA review in view of the positive macroeconomic results and satisfactory performance.
As reported by the IMF, the main objective of the Dominican economic authorities' program is to limit pro-cyclical policies in the short-run while strengthening debt sustainability and growth prospects over the medium-term through a combination of fiscal consolidation and a deepening of the structural reform agenda.
The IMF staff team highlights that the macroeconomic performance continues to be very positive in the Dominican Republic, but alerts that the risk of overheating is rising. The economy expanded 71?2 percent in the 12 months to September 2010 (yoy), after reaching near- stagnation in mid-2009. Staff estimates that the output gap is closing rapidly. As reported, there was an uptick in inflation in September and October but headline inflation remains contained at 61?4 percent in October 2010 (yoy), against a target of 6n7 percent for the year; core inflation stood at about 41?4 percent in October 2010 (yoy). The external current account deficit has widened somewhat more than expected and is heading for 71?2 percent of GDP in 2010.
Already by the fourth review, the IMF acknowledged that with the first part of the program successfully implemented (naming fiscal accommodation), the authorities would focus on implementing the second part said to involve a gradual fiscal consolidation.
In June 2011, the Dominican authorities would authorize increases in electricity tariffs as well as increased taxation, as work proceeded for the approval of the fifth and sixth reviews of the SBA.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25041.0
More... (http://www.dr1.com/index.html#2)