NewsWhore
02-16-2012, 12:30 PM
President Leonel Fernandez says that despite the ending of the agreement with the IMF, the country will continue growing and generating investor confidence. "Confidence will continue because the agreement with the IMF expired this February anyway, so that really we have reached the end of the agreement and of course what there is, from now on is a monitoring by the IMF until the end of June or July; this monitoring will continue," he said. On Tuesday February 14, the end of the Stand-by arrangement was announced, following a lengthy stalemate arising from the government's refusal to comply with the IMF's demand that the electricity rates should be increased. Two reviews were still pending and US$500 million is yet to be disbursed.
Nonetheless, the opposition PRD party's Economic Commission warned yesterday that the break with the IMF could put other agreements and disbursements including those from the World Bank (WB) and the Inter-American Development Bank in danger, because they are conditioned to the IMF agreement.
Arturo Martinez Moya, the head of the PRD commission, made it clear that these resources would be assigned to the electricity sector and that the government should convince these international agencies to carry out the disbursements without the IMF Stand-by arrangement. In addition, the PRD commission warned that the country risk factor (as determined by risk assessment agencies) could be affected by the break. Martinez said that the IMF also sends a message to the international community that the Dominican government did not respect the agreement, did not fulfill its commitment and the management is misguided. "The IMF was the one that broke off with the government because it was unreliable, now this has its consequences in that with the break off of the agreement more than a billion dollars have been disbursed and the government has to justify how it was spent," he said.
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Nonetheless, the opposition PRD party's Economic Commission warned yesterday that the break with the IMF could put other agreements and disbursements including those from the World Bank (WB) and the Inter-American Development Bank in danger, because they are conditioned to the IMF agreement.
Arturo Martinez Moya, the head of the PRD commission, made it clear that these resources would be assigned to the electricity sector and that the government should convince these international agencies to carry out the disbursements without the IMF Stand-by arrangement. In addition, the PRD commission warned that the country risk factor (as determined by risk assessment agencies) could be affected by the break. Martinez said that the IMF also sends a message to the international community that the Dominican government did not respect the agreement, did not fulfill its commitment and the management is misguided. "The IMF was the one that broke off with the government because it was unreliable, now this has its consequences in that with the break off of the agreement more than a billion dollars have been disbursed and the government has to justify how it was spent," he said.
More... (http://www.dr1.com/index.html#1)