The Dominican Republic received US$2.7 billion in external financing in 2024 and more loans were approved this January 2025.
In the final ordinary session of the second legislature of 2024, the Senate approved two substantial loans totaling US$445 million in time for the 12 January shutdown of the legislative period. Congress resumes sessions as of 27 February 2025.
The approved loans included:
• US$45 million from the Japan International Cooperation Agency (JICA) to address the environmental crisis at the Duquesa landfill in Santo Domingo Norte.
• US$400 million from the International Bank for Reconstruction and Development (IBRD) to develop sustainable development policies to combat climate change.
The Dominican government, through the Ministry of Hacienda’s Public Credit Department, reported a total of US$2.7 billion in external disbursements during 2024.
These funds, sourced from multilateral and bilateral institutions, were allocated to budget support and investment projects, aligning with the government’s strategy to meet fiscal obligations and finance key development initiatives.
A substantial portion, US$2.44 billion (90% of total disbursements), was directed towards budget support. The remaining US$269.7 million (10%) was channeled into investment projects, reflecting the government’s dual focus on maintaining fiscal liquidity and fostering infrastructure development and social programs.
Among the investment projects, multilateral organizations played a significant role. The International Bank for Reconstruction and Development (IBRD) contributed US$64.2 million, followed by the Inter-American Development Bank (IDB) with US$50.8 million, and the Central American Bank for Economic Integration (CABEI) with US$55 million.
Other multilateral and bilateral institutions contributed US$74.9 million, underscoring the importance of international cooperation in financing key national development projects.
The US$2.44 billion allocated to budget support was primarily sourced from the IBRD, which disbursed US$401.1 million. The IDB contributed US$33.6 million to complement the country’s fiscal needs. This focus on budget support has enabled the government to maintain stable public debt management and adhere to the provisions of Law No. 07-24.
Global bonds accounted for US$2 billion of the total disbursements, excluding US$1.03 billion used for debt repurchase as part of the government’s liability management operations. These figures highlight the government’s commitment to optimizing its external debt conditions.
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El Caribe
15 January 2025