NewsWhore
05-30-2007, 02:50 PM
The International Monetary Fund (IMF) team that visited to review the government's economic program is reported to be pleased with the way the Dominican monetary authorities are carrying out monetary and financial policies. The IMF is supporting the program with a 36-month stand-by arrangement (in an amount of US$635 million). However, the team, headed by Andy Wolfe, did urge a "cautious" use of surplus tax monies, and pushed for these to be used in areas not assigned funds in the 2007 budget law.
"Looking forward, the mission urged the authorities to adopt a cautious stance in the management of the higher than expected fiscal revenues, given their cyclical nature, thus limiting any spending increase to well-defined areas not included in the 2007 budget and aiming to save a portion of the additional revenues," according to the IMF.
The IMF's resident representative in the Dominican Republic, Erik Offerdal read the press release. The mission congratulated the authorities on their prudent monetary and financial policies and the resulting favorable macroeconomic environment. Economic growth remains strong, the central bank is successfully containing inflation within the target band, despite a sharp increase in oil prices, the net international reserves of the central bank have increased well beyond the target for the year as a whole, and central government revenues have exceeded budget projections while spending is in line with the budget. The mission also noted as positive the advances in structural reforms; that the introduction of registered tax invoices has reduced tax evasion, that the financial position of the banking system continues to improve, and that the central bank has extended the maturity profile on its stock of certificates and lowered their interest rates.
The IMF report also looked at the good work carried out in the financial recovery of the electricity sector during the first quarter of 2007, but it also warned that for this to continue a strong effort was needed to reduce financial losses for the rest of the year. The IMF team also obtained promises for legislation that will criminalize electricity theft and approve the refinancing the Central Bank. The IMF will be preparing the documentation for submission to the IMF board of directors, and explained that the board discussion should take place in mid-July 2007.
http://www.imf.org/external/np/sec/pr/2007/pr07112.htm
More... (http://www.dr1.com/index.html#3)
"Looking forward, the mission urged the authorities to adopt a cautious stance in the management of the higher than expected fiscal revenues, given their cyclical nature, thus limiting any spending increase to well-defined areas not included in the 2007 budget and aiming to save a portion of the additional revenues," according to the IMF.
The IMF's resident representative in the Dominican Republic, Erik Offerdal read the press release. The mission congratulated the authorities on their prudent monetary and financial policies and the resulting favorable macroeconomic environment. Economic growth remains strong, the central bank is successfully containing inflation within the target band, despite a sharp increase in oil prices, the net international reserves of the central bank have increased well beyond the target for the year as a whole, and central government revenues have exceeded budget projections while spending is in line with the budget. The mission also noted as positive the advances in structural reforms; that the introduction of registered tax invoices has reduced tax evasion, that the financial position of the banking system continues to improve, and that the central bank has extended the maturity profile on its stock of certificates and lowered their interest rates.
The IMF report also looked at the good work carried out in the financial recovery of the electricity sector during the first quarter of 2007, but it also warned that for this to continue a strong effort was needed to reduce financial losses for the rest of the year. The IMF team also obtained promises for legislation that will criminalize electricity theft and approve the refinancing the Central Bank. The IMF will be preparing the documentation for submission to the IMF board of directors, and explained that the board discussion should take place in mid-July 2007.
http://www.imf.org/external/np/sec/pr/2007/pr07112.htm
More... (http://www.dr1.com/index.html#3)