RD delegation discusses key issues with IMF

Dominican Republic, Héctor Valdez Albizu, Central Bank Governor and Finance Minister Daniel Toribio Marmolejos led technical mission which traveled yesterday to the headquarters of the International Monetary Fund (IMF) in Washington, in order to revive the talks on the subjects in which the country has called dispensations, and specifically concerning fiscal policies and the tax system. Similarly, according to sources, the IMF's mission ahead of his visit RD and is a part the next week.

The Dominican team in Washington directs monetary policy and the Prosecutor.

The IMF technical mission is headed by Alejandro Santos, head of the mission to the Dominican case, and reportedly next week will be a special team to analyze the tax system that applies in the country, with the aim of contributing to close discussions at the seventh and eighth revision of the Pact u000aStand by signed with the country in November 2009.

The Convention of the type Stand by involves an amount of $1,700 million, equivalent to 438 million SDRS (special drawing rights), for a period of 28 months. SDRS are composed of a basket of currencies of the US dollar, Japanese yen, the euro and the pound sterling.

"Waiver" or dispensations
during the recent agreements signed by the country the issue that has generated more exemptions have been the Government's deficit, led in many cases by external factors such as the rise in the price of oil and its derivatives on the world market, the impact of the global crisis and the continuing problems of the electricity sector, taking much of the resources of the budget and national and international financimientos.

In general, the country has made great efforts to commit the pautados, in an international context of serious difficulties, as it has been recognized u000arecent missions of the financial agency multilateral.

During the most recent visit to the country Santos stated that despite the unexpected deterioration in the external environment RD macroeconomic conditions remain favorable, with a growth of 4% of GDP. At end of June the country failed to meet two performance criteria (the goal of the current account deficit of the electric power industry) and the goal for the consolidated fiscal deficit.

In recent weeks, the debate has focused on an alleged claim for adjustment of the electricity tariff that would raise the invoice to the public, among other settings that have been approved in the national budget and have not been applied in a comprehensive manner, impacting government revenue projections.

( )
The ECONOMISTS of RD VIENEN the Friday
mission QUE SALIÓ
the delegation led by Héctor Valdez Albizu and Daniel Toribio Marmolejos were accompanied by technicians of their u000adependencies and have scheduled return Friday to the country

Accompany the Governor of the CB, Joel Tejeda, Deputy Manager of monetary policy; and July Andújar, director of the Department of monetary programming.

A. Toribio Malmolejos accompany it managers of the Department of tax policy. It is unknown if any other government official accompanying the mission.

Fund spokesman
recently the spokesman for the IMF, David Hawley, assured that revisions to the programme have made progress, but the seventh and eighth revisions were delayed because the authorities have not fulfilled certain requirements of the programme, particularly in the energy sector. He revealed that the mission will come in the first half of December to continue the negotiations.

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