The International Monetary Fund reports on the US$600
million Stand By Arrangement signed with the Dominican Republic last week. The
government expects to receive this week US$120 million under the arrangement. In
a press release on the agreement, explains the assistance was granted following
the doubling of the debt-to-GDP ratio, the collapse of governmental banking
supervision and the deterioration in public finances under the present
administration.
The Fund press release indicates that by the end of this year full unification
of the dual exchange markets should be in place. "The Dominican Republic’s
tradition of sound fiscal policies and low public debt needs to be restored,?
states the release from the IMF. Banking interest rates are expected to keep
high as the Fund points out that ?monetary restraint will help contain pressures
on the currency and inflation.?
See
http://www.imf.org/external/np/sec/pr/2003/pr03147.htm