Press Release No. 06/204

Press Release: IMF Statement on the Dominican Republic

September 17, 2006

The following statement was issued today in Singapore by Mr. Jose Fajgenbaum, Deputy Director of the Western Hempishere Department of the International Monetary Fund (IMF):

"On September 16, 2006, the delegation of the Dominican Republic to the IMF Annual Meeting, headed by Secretary Montas and Governor Valdez, met with Deputy Managing Director Carstens and members of the Fund staff. This was a productive meeting, during which the delegation described recent developments and the policy intentions for the remainder of this year and for 2007.

"Mr. Carstens noted the considerable success of the authorities' program in restoring high growth, low inflation, financial stability, and a strong balance of payments. He encouraged the authorities to persevere with the implementation of sound policies so as to consolidate further the public finances and ensure that the gains achieved so far are sustained. These efforts need to be supported by putting in place the structural/institutional reforms envisaged in the program and making every effort to address the financial problems of the electricity sector.

"It was agreed that a staff mission will visit Santo Domingo around mid-October to continue the discussions on the fifth review under the Stand By Arrangement and the policy framework for 2007."