Press Release No. <a name="P16_75"></a>04/251

The following statement was issued today in Washington, DC by Steven Phillips, the International Monetary Fund's (IMF) mission chief for the Dominican Republic:

"The IMF mission has reached broad agreement, at the staff level, with the Dominican authorities on the main elements of a program that could be supported by a new two-year Stand-By Arrangement with the Fund. The mission will now initiate the process for submitting the draft program documents for review by the IMF's management.

"In the coming weeks, the authorities intend to move forward with policies essential to the success of their program. These steps include, among others, the adoption of a budget for 2005 consistent with program objectives, measures to improve government expenditure control and debt management, and a further strengthening of financial sector supervision and regulation in line with international best practices. The authorities are also working to secure the necessary financing for their program. Once these elements are in place, and IMF management approves the proposed program, it is expected that the authorities' Letter of Intent, describing their economic and financial program and requesting a Stand-By Arrangement from the Fund, can be circulated to the IMF's Executive Board for its consideration."

The statement by Mr. Phillips was issued at the end of a visit to Washington by a delegation of the economic policy authorities of the Dominican Republic.

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