The Dominican Republic Central Bank has published four pages of its official Letter of Intent, addressed to the International Monetary Fund. The IMF board meets today to consider the content of the missive. While the text is much too large to include here, the basic points are macro-economic measures for the mid-term; financial and economic policies for 2004-2006; financing policies; exchange and monetary policies; structural reforms in fiscal, financial and institutional levels; and the energy sector. The introduction sets out seven areas that need to be considered, and that are being worked on by the Dominican government. These areas are:
Macroeconomic and structural policies designed to strengthen price stability and assure the reactivation of sustained growth.
An adjustment of the fiscal policy with the aim of improving public accounts and reducing the debt load, which will guarantee sustainability for the medium term.
A financial strategy that will permit the public sector to overcome its lack of liquidity in the short term, and maintain the debt for the medium term.
A strategy for strengthening the banking system in order to establish solid financial intermediaries.
A plan to improve the efficiency of the energy sector in order to assure its financial viability.
A reform of the public financial institutions in order to improve the design and the execution of the fiscal policies and to allow for large and necessary fiscal adjustments
And finally, a greater strengthening of the Central Bank and the body that supervises the banking system, for better implementation of monetary policy and the stability of a financial system that works smoothly is guaranteed.