The risk assessment team at JP Morgan issued a statement saying that the Hipolito Mejia’s government has placed his re-election bid ahead of economic stability as the main priority of the government. “While a new Letter of Intent [with the IMF] could be negotiated with more realistic targets, we are not optimistic that the Mejia administration will give the fulfillment of the IMF program priority over its desire for re-election in May 2004, even amid the challenging external debt service schedule over the remainder of 2003 and 2004 (US$1 billion due),” states the 3 October update from JP Morgan.
By and large, JP Morgan does not think there is a positive perspective for the short term and does not disregard the possibility of the monetary and financial system facing new pressures. The report also refers to the return of the IMF mission that traveled to the Dominican Republic to establish the first monitoring of the Stand-By Arrangement, signed by the DR government with the IMF.
See JPMorgan.pdf