Valdez Albizu favors extends agreement with IMF

The Governor of the Central Bank, Héctor Valdez Albizu, yesterday said, personally, that it favours that the Dominican Government extended by six months over the agreement Stand by the country signed with the International Monetary Fund (IMF), for in it forward is the precautionary type.

Pointed out that this is a personal position shared by the technicians of the Central Bank, and therefore asked the President differ the Pact so that instead of a new Stand by, the Convention is the precautionary type form that resources will be reserved and used only in an invalidable situation.

"But the President has not opined about it, nor it has been exposed, but with responsibility that characterizes me, my position would be that the agreement we extend by six months more, to ensure certainty, credibility and good management of this process electoral" drew Valdez Albizu, specify that you do not know if it is being sympathetic or unsympathetic or if they will "burst" or u000aNo, but their position is the same one that has the technicians of the entity banking.

Valdez Albizu explained that the $500 million are pending disbursement of the Covenant Stand by can be placed in a new agreement the precautionary type, which is a mode of financing to which you can access if you have unmanageable situations.

Argued that it presented to the IMF extended the agreement until June and that resources become Central Bank for the purposes of balance of payments in a sign of seriousness, so that they do not think that you sought to close the outstanding assessments and use resources for political purposes. Also revealed that the increase in electricity tariff has been delayed and denied that Dominican Republic there are in crisis.

Said the country should banish the pessimism and bet on optimism towards the future, to consider that in terms of macroeconomic management indicators do not show that and that the country "is good", compared to the region u000aLatin American. He believes that the situation is not as difficult and has been a great effort, citing as an example that in a country where the central government deficit is in 1.6% of GDP, which fell from 3.5% to 1.6%, it is of "a terrible adjustment, and that you have to understand it".

He pointed out that you assuming that the deficit will reach 2%, it must be remembered that all the countries of Latin America and Central America are above 4%, Europe in 60% average and 115%, USA

Valdez Albizu spoke in those terms at the restaurant Porter House, in the Christmas lunch offered by the Central Bank to the press.

Pointed out that the country is not of the IMF technical mission, but a representation of the body of two people who have come to get information, after explaining that apparently statements offered by the Minister of economy, planning and development, Themistocles Montás, were descontextualizadas, because what he referred to was to u000awho here had become a mission that had been requested to analyse the situation Prosecutor.

In this regard, said that tomorrow Sunday will be a mission of Dominicans technicians, product of the commitment made in the trip that he and Finance Minister Daniel Toribio made to Washington last week, "that we were going to send a Commission of technicians to reconcile any discrepancies of the projections for the year 2012" to Washington. And, besides, explain and analyze the "detour" that may exist for the electrical problem for the closing of the year.

electricity tariff
Valdez Albizu said he feels very optimistic because in principle the issue of the electricity tariff will be postponed, because an increase in careful now against good governance and good electoral development, who said he explained to the IMF, that at the end of the road the important thing is to meet the goals and caps set forth in the program.

Pointed out that u000a"in the end what vale is the final result of the year", after explaining in a quarter may be presented with a deviation of 0.2 of the GDP, of approximately $100 million (RD$ 3,800 million), a problem of shortfalls in revenue and such deviation, "you what has to say is how will correct at the end of the year and where we are going to arrive", indicated.

, The Governor of the Central Bank noted that in this case that has been part of the discussion, since despite the excellent work of the Directors-General of internal taxes (DGII) and customs revenues have fallen from RD$ 8,000 to RD$ 10,000 million by the end of the year.

Explained that government revenues are lower estimates and that which indicates is that this year were overestimated it slightly, falling below the special adjustment of expenditure, where a 38% growth has fallen to less than 8%. In this context said that the problem does not u000ais on the side of spending, but revenues, because public investment has shrunk and add to that that you had to be transferred more than budgeted to the CDEEE, there is a diversion, "and that explained it at the bottom now, having just returned last week, I went on Wednesday and returned on Friday".

He noted that, together with Daniel Toribio, they talked three hours with the technicians of the IMF, to then develop a program.

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