IMF on the DR

[NewsWhore]

Deputy Managing Director and Acting Chairman at the International Monetary Fund, Murilo Portugal has issued a public statement about the completion of the fifth and sixth reviews of the Stand-by Arrangement with the Dominican Republic. In the statement he acknowledges the authorities' efforts so far that have led to a strong macroeconomic performance with a 10.7% rate of growth and inflation of 5% in 2006 and makes recommendations for the government to adhere to the fiscal program in 2007. "There were delays in structural reforms and slippages in fiscal policy, although their impact was contained by a prudent monetary policy stance. Strengthening medium-term growth prospects and reducing vulnerabilities will require that the authorities adhere to the fiscal program and build on the progress made thus far in implementing their structural reform agenda, particularly following the approval of legislation reforming fiscal management practices," says Portugal.
The IMF authorized the disbursement of US$57.5 million, and approved the extension of the 28-month arrangement by eight months to January 2008 and the re-phasing of disbursements to bolster the credibility of the authorities' commitments in 2007.
In the statement, Portugal also encouraged the authorities to reduce energy subsidies, and maintain strict control over current expenditure. "Adhering to the fiscal targets will be an important challenge ahead of next year's presidential elections," he states.
http://www.imf.org/external/np/sec/pr/2007/pr0725.htm

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