Press Release: IMF Executive Board Reviews Noncomplying Purchase by the Dominican Republic

February 1, 2005

The Executive Board of the International Monetary Fund (IMF) approved on January 31, 2005 a request by the Dominican Republic authorities to waive the nonobservance of performance criteria related to a noncomplying purchase under the country's Stand-By Arrangement with the IMF that was approved on August 29, 2003.

Following the Executive Board's review of the request, Agustín Carstens, Deputy Managing Director and Acting Chair, made the following statement:

"The Executive Board reviewed a noncomplying purchase made by the Dominican Republic under the Stand-By Arrangement, which arose as a result of misreporting of data to the Fund regarding the balance of the nonfinancial public sector and the contracting of external debt by the public sector for 2003.

"The Executive Board regretted the country's failure to provide accurate data, which was the result of administrative weaknesses in public expenditure management. The large size of the data revisions was seen as of particular concern. However, in light of the corrective measures taken by the authorities to strengthen fiscal policy and data reporting, the Board decided to grant a waiver for the nonobservance of performance criteria that gave rise to the noncomplying purchase," Mr. Carstens stated.


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