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Dominican Republic settles US$1.7B debt with IMF

Santo Domingo.- The Central Bank on Tuesday said the country’s commitments with the International Monetary Fund (IMF) have been fully complied with disbursements related to the Stand-By Agreement signed October 6, 2009.

It said through the Agreement, the IMF approved credit to the Dominican State of around US$1.7 billion, equal to US$1.09 billion in Special Drawing Rights (SDRs); of these only US$1.195 billion (SDR US$766.2 million), were disbursed ,being available around US$505.0 million (SDR US$328.3 million) of the resources initially established.

It said the undisbursed amount resulted from that some of the conditionals set out therein before the deadline weren’t completed. “The aforementioned Agreement expired on March 8, 2012. Of the total resources disbursed, the share received by the Dominican government was US$856.9 million (SDR US$550.0 million), which the IMF allocated resources to a government to support budget for the first time, while the remaining amount of US$338.1 million (SDR US$216.1 million) was received by the Central Bank in support of international reserves, which is the usual destination of loans to that institution.”

“It’s important to remember that the main objective of this agreement with the IMF was to stimulate the recovery of the economy in an environment of macroeconomic stability and strengthen our growth prospects, through conducting a counter-cyclical policy in the short term, achieving medium-term sustainability, and finally to address the effects of the international financial crisis of 2007-2009,” the Central Bank said in an emailed statement

“With the balance of this commitment, the country leaves open the possibility to freely use this type of credit facility with the IMF in the future,” the Central Bank said.

It adds that thanks to this important milestone, “the authorities contribute to improve the balance of the external public debt, continuing the process of consolidation of fiscal accounts and international reserves, in order to preserve macroeconomic stability that has characterized the Dominican Republic during the last years.”

Source: DT

July 21, 2016

Category: DR News |

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