The Central Bank Governor Hector Valdez Albizu and Hacienda (Treasury) Minister Donald Guerrero say they have a economic stimulus plan in the making. In a video on 13 April 2020, the top financial authorities of the nation stated: “We want to bring a message of confidence that we are going to get out of this, we are going to reactivate our economic activity.”
The plan will give “special treatment” to small, medium, and micro-businesses. Details on the fiscal measures and monetary incentives will be announced. The top-ranking financial officers said that the initiative contemplates giving the MSMEs access to loans at 3.5% interest to stimulate the economy.
They said they have received instructions from President Danilo Medina to develop the plan that will be implemented when the emergency health situation caused by the coronavirus epidemic begins to subside.
The plan will be articulated using instruments of the International Monetary Fund (IMF), and will also be supported by repurchase agreements — short-term secured loans — involving the Federal Reserve of the United States.
The World Bank forecasts the Dominican economy will see a drop in GDP growth from 5% in 2019 to 0% in 2020. But it predicts a recovery to 2.5% by 2021 and 4% by 2022.
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World Bank report
14 April 2020