Danilo wants help from the IMF for structural reforms
Diario Libre
PUNTA CANA. The President-elect, Danilo Medina, had a meeting yesterday with authorities from the International Monetary Fund (IMF). It was part of the XI Regional Meeting on Central America, Panama and the Dominican Republic, sponsored by the agency, which began yesterday and ends today.
During the meeting, Medina showed interest in establishing a rapprochement with the IMF in order to obtain a greater technical support that will permit him to go forward with the agenda of structural reforms that he thought about for his administration. He also wants to set the basis for consolidating the macro-economic achievements that the country has achieved.
Likewise, he suggested the possibility in which during the month of September he could receive the visit by the IMF mission in order to gather the information regarding the relevant macro-economic issues, with the idea of preparing a diagnosis of the Dominican economy.
This information could serve as the basis, moreover, for a mission of Article IV during the following months, and in the same way contribute to the definition of a possible joint project which results in a new agreement.
Stresses the DR economy
For their part, the IMF officials appeared to be highly receptive, and they had a very positive disposition to collaborate with what is technically necessary in order to support the new governmental administration. Likewise, they indicated the good performance of the Dominican economy over the last two decades in relation to other countries in the area.
They appreciated that in order to lessen the possible negative effects of the international financial turbulences that could affect the Dominican economy, the new authorities want to implement a program of strengthening the economy because of the process of slowing down that the world economy has been experiencing and the European crisis.
They stressed that the macro-economic indicators, mostly the expected economic growth of 4% for this year and 4.5% for next year, in spite of the difficult external environment.
In terms of inflation, they mentioned that it has remained low, at an annual rate of 2.71%, lower even than the goal set by the Central Bank, and an accumulated inflation-January-June-of 0.89%. They also mentioned that the macro-economic numbers are within the projections that were originally discussed with the International Monetary Fund mission last year.
During the meeting, the IMF was represented by the Deputy Managing Director of the IMF, Min Zhu, the director of the Western Hemisphere Department, Nicolas Eyzaguirre and Miguel Savastano.
Consolidation
The Governor of the Central Bank, Hector Valdez Albizu, said that given an international environment so complex, our region should join forces for a real fiscal consolidation that allows an improvement in the sustainability of the debt. He added that at the same time they need to continue strengthening the institutionalism of the monetary policy, as well as continuing going forward in the implementation of prudent macro policies that serve as a shelter against the deterioration of the international financial conditions.
"Fortunately, the perspective for growth for the countries of Central American and the Caribbean, as well as for the rest of Latin America, continue to be encouraging, and we should use this inducement to continue establishing the basis of a more solid growth in the future," said the governor.
For his part, the Deputy Managing Director, Min Zhu, argued for a continuation of the dialogue, reiterating the commitment of the organization with all of the governments in the region.
During the meeting, Medina showed interest in establishing a rapprochement with the IMF in order to obtain a greater technical support that will permit him to go forward with the agenda of structural reforms that he thought about for his administration. He also wants to set the basis for consolidating the macro-economic achievements that the country has achieved.
Likewise, he suggested the possibility in which during the month of September he could receive the visit by the IMF mission in order to gather the information regarding the relevant macro-economic issues, with the idea of preparing a diagnosis of the Dominican economy.
This information could serve as the basis, moreover, for a mission of Article IV during the following months, and in the same way contribute to the definition of a possible joint project which results in a new agreement.
Stresses the DR economy
For their part, the IMF officials appeared to be highly receptive, and they had a very positive disposition to collaborate with what is technically necessary in order to support the new governmental administration. Likewise, they indicated the good performance of the Dominican economy over the last two decades in relation to other countries in the area.
They appreciated that in order to lessen the possible negative effects of the international financial turbulences that could affect the Dominican economy, the new authorities want to implement a program of strengthening the economy because of the process of slowing down that the world economy has been experiencing and the European crisis.
They stressed that the macro-economic indicators, mostly the expected economic growth of 4% for this year and 4.5% for next year, in spite of the difficult external environment.
In terms of inflation, they mentioned that it has remained low, at an annual rate of 2.71%, lower even than the goal set by the Central Bank, and an accumulated inflation-January-June-of 0.89%. They also mentioned that the macro-economic numbers are within the projections that were originally discussed with the International Monetary Fund mission last year.
During the meeting, the IMF was represented by the Deputy Managing Director of the IMF, Min Zhu, the director of the Western Hemisphere Department, Nicolas Eyzaguirre and Miguel Savastano.
Consolidation
The Governor of the Central Bank, Hector Valdez Albizu, said that given an international environment so complex, our region should join forces for a real fiscal consolidation that allows an improvement in the sustainability of the debt. He added that at the same time they need to continue strengthening the institutionalism of the monetary policy, as well as continuing going forward in the implementation of prudent macro policies that serve as a shelter against the deterioration of the international financial conditions.
"Fortunately, the perspective for growth for the countries of Central American and the Caribbean, as well as for the rest of Latin America, continue to be encouraging, and we should use this inducement to continue establishing the basis of a more solid growth in the future," said the governor.
For his part, the Deputy Managing Director, Min Zhu, argued for a continuation of the dialogue, reiterating the commitment of the organization with all of the governments in the region.
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