Central Bank governor Hector Valdez Albizu met with officials from the International Monetary Fund as part of their Post Program Monitoring process yesterday, Wednesday 5 March. Valdez spoke of the 4.1% growth in the GDP, which was above the IMF estimate for 2013 and the 3.9% inflation rate that was lower than predicted by the IMF. He also said that the forecasts for this year are for a 4.5% growth in GDP, relative stability in the exchange rate, and sufficient gross international reserves that guarantee at least three months of imports. IMF representative Przemek Gajdeczka said that the visit is aimed at examining the evolution of key aspects of the economy, budgetary execution and electricity sector performance.
One of the key issues is the growing public sector debt with local banks. Economist Alejandro Fernandez reports public sector borrowing in Dominican banks was RD$35.4 billion in 2011 and increased to RD$68.2 billion in the electoral year 2012. But it has continued to increase. He says government borrowing is now at RD$96.9 billion and 7.3% net public credit of banking assets, which is double the regional average of 3.5%.
www.diariolibre.com/economia/2014/03/06/i513101_fmi-temstocles-monts-pasan-balance-economa-dominicana.html
www.diariolibre.com/argentarium/2014/03/06/i512111_mister-gajdeczka-crdito-pblico.html