DR Reaches Agreement With IMF For $1.7B Loan
WASHINGTON (Dow Jones)–The International Monetary Fund announced Tuesday a staff-level agreement with the Dominican Republic for a $1.7 billion loan.
The IMF’s executive board must still approve the 28-month stand-by arrangement.
“We applaud the authorities for their strong program of policies, which demonstrates their commitment to fortify the institutional framework and the economy of the Dominican Republic,” said IMF Managing Director Dominique Strauss-Kahn in a statement.
The Dominican Republic sent the fund a letter of intent committing to a primary budget deficit of 0.8% of gross domestic product in 2009, with plans to reach a balanced budget in 2010 and a 2% of GDP surplus in 2012.
To reach that goal, the government plans a range of structural reforms, including improving tax administration and sharply cutting tax exemptions.
-By Tom Barkley, Dow Jones Newswires; 202-862-9275; tom.barkley@dowjones.com
Source: http://online.wsj.com/article/BT-CO-20091006-710119.html
