2003News

IMF negotiations resume

A delegation from the International Monetary Fund (IMF) arrived in the country on Wednesday and resumed its talks with the Dominican authorities on the progress of the standby agreement signed in August. The Central Bank announced that the teams set to work immediately on studying macro-economic figures, a stage of the process that is expected to last two weeks. The aim of the IMF mission is to produce a first revision of the agreement, incorporating energy sector components. The IMF had suspended its disbursements to the Dominican authorities and withdrawn its delegation in reaction to the government’s sudden reacquisition of the power distribution companies Edenorth and Edesur, previously under the control of Spanish power company Union Fenosa. The Central Bank expressed hope that the IMF’s return will clear the way for further disbursements aimed at strengthening the CB’s international reserves, which are at dangerously low levels as a result of the Baninter collapse and other economic factors.