NewsWhore
08-28-2007, 04:40 PM
International Monetary Fund country resident representative Erik C. Offerdal has said that the short term challenge for the DR is to maintain fiscal discipline in order to help reduce the burden that the public debt has on the economy, so as to reduce external vulnerabilities.
Offerdal added that, as determined in the IMF Stand-by Arrangement with the country, the public debt should become 30% of the GDP within a 10-year period. The public debt is currently at 45% of the GDP. Offerdal says that reducing the public debt will require a continued effort to reduce public sector subsidies to the electricity sector. He spoke of the importance of the electricity sector becoming self-sufficient.
He also commented on progress made by the State-Run Electricity Companies (CDEEE) in renegotiating contracts with generating companies, renegotiating the Madrid Accord contracts and reducing the distribution companies' financial losses.
Offerdal says that the volatility of international financial markets will not affect the DR and says that if there is an effect it will be minimal. He continued by saying that a lesson the DR should take from international market vulnerability is that it should reduce its debt.
He said that he expects the IMF to approve the most recent letter of intention sent by the government authorities. With the approval by the IMF board, the country would receive US$228 million this year.
More... (http://www.dr1.com/index.html#7)
Offerdal added that, as determined in the IMF Stand-by Arrangement with the country, the public debt should become 30% of the GDP within a 10-year period. The public debt is currently at 45% of the GDP. Offerdal says that reducing the public debt will require a continued effort to reduce public sector subsidies to the electricity sector. He spoke of the importance of the electricity sector becoming self-sufficient.
He also commented on progress made by the State-Run Electricity Companies (CDEEE) in renegotiating contracts with generating companies, renegotiating the Madrid Accord contracts and reducing the distribution companies' financial losses.
Offerdal says that the volatility of international financial markets will not affect the DR and says that if there is an effect it will be minimal. He continued by saying that a lesson the DR should take from international market vulnerability is that it should reduce its debt.
He said that he expects the IMF to approve the most recent letter of intention sent by the government authorities. With the approval by the IMF board, the country would receive US$228 million this year.
More... (http://www.dr1.com/index.html#7)