The International Monetary Fund mission was here 17-28 June. In a statement issued at the conclusion of the visit, the mission said that while the GDP grew 0.3% year on year after growing almost 4% in each of the four quarters of 2012, growth is expected to recover and close the year at 2%. It also said the measures had been positive and resulted in a decrease in the nonfinancial public sector deficit to 0.2% of GDP in January-March 2013 from 1.6% of GDP in the same period of 2012, reflecting the impact of the tax reform and public investment slowdown.
The IMF also highlighted that international reserves position had improved significantly. It attributed this to the placement of a US$1 billion sovereign international bond in April and large private capital inflows during March-May allowed the authorities to increase international reserves. As of June 26, gross international reserves stood at US$4.1 billion.
The mission welcomed the authorities’ intention to balance the accounts of the nonfinancial public sector by 2016. It recommended the government go forward with the recapitalization of the Central Bank under the 2007 law calling this “an important factor toward achieving a strong, sustainable fiscal position of the consolidated public sector over the medium term”.
Diario Libre reported that the IMF had recommended a reduction on government financing. Writing for Diario Libre, financial analyst Alejandro Fernandez commented that the government had borrowed RD$90.95 billion. Of that total, 73% was borrowed by the central government and 100% of those loans were granted by the governmental Banco de Reservas.
http://www.diariolibre.com/economia/2013/06/29/i390499_fmi-recomienda-contener-financiamiento-sector-publico.html
http://www.imf.org/external/np/sec/pr/2013/pr13238.htm